{"id":131507,"date":"2021-06-21T11:15:27","date_gmt":"2021-06-21T15:15:27","guid":{"rendered":"https:\/\/antiguanewsroom.com\/?p=131507"},"modified":"2021-06-21T11:15:27","modified_gmt":"2021-06-21T15:15:27","slug":"caribbean-airlines-record-loss-of-us-25-million","status":"publish","type":"post","link":"https:\/\/antiguanewsroom.com\/caribbean-airlines-record-loss-of-us-25-million\/","title":{"rendered":"Caribbean Airlines Record Loss Of US$ 25 Million"},"content":{"rendered":"
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Caribbean Airlines today announced its unaudited financial results for the first quarter of 2021, recording a loss\u00a0of TT$172.7m\u00a0(US$25.7m) and a 75% decline in revenue, compared to the same period in 2020.<\/p>

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The losses follow a similar downturn in 2020, which saw an operating loss of TT$738m (US$109.2m) compared to operating profits for 2018 and 2019.\u00a0Since the beginning of the COVID-19 pandemic and the suspension of operations at its base in Trinidad and Tobago, the airline has seen passenger numbers plummet, and flight numbers reduced to less than 10% of normal operations.<\/p>

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Despite this, the airline continued to offer services on many of its routes and provided invaluable repatriation flights for Caribbean citizens. Given the financial impact of the pandemic, Caribbean Airlines proactively reduced costs, and Q1 2021 expenses are down 52% compared to the same period in 2020. Further, the airline was kept afloat through a government guaranteed loan\u00a0and a cash injection by the Government of Trinidad and Tobago totalling US$100 million.<\/p>\n

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The announcement that the borders of Trinidad and Tobago may soon reopen is welcome news, but all forecasts suggest that the recommencement of travel will not be in the same volumes as they were pre-COVID. Therefore, until air travel regains its pre-COVID momentum the airline will need to adjust its operations to cater for a reduced scale of demand after the opening of the borders. Put simply, passenger demand in the short to medium term is not going to recover sufficiently to support the existing company structure after the reopening of the borders.<\/p>\n

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As a consequence, Caribbean Airlines is required to take further steps to ensure it has a sustainable business model for 2021 and beyond. These steps include major cost reductions in all areas of the airline’s operations, specifically its human resource complement, its fleet and other assets, and its route network.<\/p>

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As part of the streamlining strategy, the number of jets in the fleet will be reduced, for the time being, over the course of 2021. Its route network will also be adjusted to reflect the changing market.<\/p>\n

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In terms of employees, the airline has determined that 25% of its workforce or about 450 positions throughout its network is surplus to its current needs. The Company will embark on consultation with the employees and other stakeholders, with respect to treating with this surplus labour situation.<\/p>\n

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Caribbean Airlines passenger and cargo services continue to operate, with all the latest flight details\u00a0available on\u00a0www.caribbean-airlines.com<\/a><\/u>.\u00a0The airline thanks its valued customers for their continued support.<\/p>\n

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BACKGROUND:<\/strong><\/p>\n

Globally, COVID-19 has been an unprecedented shock to air travel. Over the last year, Caribbean Airlines has felt first-hand the impact of the pandemic. After implementing several short term measures to stabilize the airline, regrettably, the\u00a0Company is now\u00a0left with no choice but to undertake further solutions based on its existing needs.<\/p>\n

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Even with the pending re-opening of the borders of Trinidad and Tobago, travel demand is not expected to be the same as pre-COVID and current\u00a0passenger demand is not going to recover sufficiently to support the existing company structure.<\/p>\n

\u00a0<\/strong><\/p>\n

1. Why is there a need for retrenchment?<\/strong><\/p>\n

ANSWER:\u00a0<\/strong>In order to survive in the short to medium term, the company has to decrease the aircraft fleet to match reduced passenger demand among other initiatives. The decrease in the aircraft fleet\u00a0will result in surplus labour. Surplus labour is the reason for the proposed retrenchment exercise.<\/p>\n

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2. How is retrenchment different from temporary lay-off?<\/strong><\/p>\n

ANSWER:\u00a0<\/strong>A retrenchment is a termination of employment for reason of redundancy (i.e., surplus labour). A temporary lay-off is a temporary suspension of the employment contract, but without termination of employment.<\/p>\n

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3. How many employees will be affected and in what areas?<\/strong><\/p>\n

ANSWER: \u00a0<\/strong>Potentially,\u00a0approximately 25% or 450 positions across the entire Caribbean Airlines network.<\/p>\n

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4. Will these measures impact the airline\u2019s current flights and cargo operations?<\/strong><\/p>\n

ANSWER: No.<\/strong>\u00a0These measures will not affect flights, cargo operations\u00a0or\u00a0the quality of service, safety and customer care that customers expect.<\/p>\n

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\u00a0<\/strong>5. Will there be Employee Assistance (EAP) available for employees?<\/strong><\/p>\n

ANSWER: Yes<\/strong>. The Company takes its duty of care seriously and has ensured that support is in place for persons needing assistance.<\/p>\n

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Caribbean Airlines today announced its unaudited financial results for the first quarter of 2021, recording a loss\u00a0of TT$172.7m\u00a0(US$25.7m) and a 75% decline in revenue, compared to the same period in 2020.   The losses follow a similar downturn in 2020, which saw an operating loss of TT$738m (US$109.2m) compared to operating profits for 2018 and […]<\/p>\n","protected":false},"author":3,"featured_media":117776,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-131507","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\nCaribbean Airlines Record Loss Of US$ 25 Million - Antigua News Room<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/antiguanewsroom.com\/caribbean-airlines-record-loss-of-us-25-million\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Caribbean Airlines Record Loss Of US$ 25 Million\" \/>\n<meta property=\"og:description\" content=\"Caribbean Airlines today announced its unaudited financial results for the first quarter of 2021, recording a loss\u00a0of TT$172.7m\u00a0(US$25.7m) and a 75% decline in revenue, compared to the same period in 2020.   The losses follow a similar downturn in 2020, which saw an operating loss of TT$738m (US$109.2m) compared to operating profits for 2018 and […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/antiguanewsroom.com\/caribbean-airlines-record-loss-of-us-25-million\/\" \/>\n<meta property=\"og:site_name\" content=\"Antigua News Room\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/antiguanewsroom\" \/>\n<meta property=\"article:published_time\" content=\"2021-06-21T15:15:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/mlavawteztbj.i.optimole.com\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2020\/10\/Caribbean-Airlines-696x399-1.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"696\" \/>\n\t<meta property=\"og:image:height\" content=\"399\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Editor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@AntiguaNewsRoom\" \/>\n<meta name=\"twitter:site\" content=\"@AntiguaNewsRoom\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Editor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/antiguanewsroom.com\/caribbean-airlines-record-loss-of-us-25-million\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/antiguanewsroom.com\/caribbean-airlines-record-loss-of-us-25-million\/\"},\"author\":{\"name\":\"Editor\",\"@id\":\"https:\/\/antiguanewsroom.com\/#\/schema\/person\/36cac05ef6398fe56ae3e6317f8535c5\"},\"headline\":\"Caribbean Airlines Record Loss Of US$ 25 Million\",\"datePublished\":\"2021-06-21T15:15:27+00:00\",\"dateModified\":\"2021-06-21T15:15:27+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/antiguanewsroom.com\/caribbean-airlines-record-loss-of-us-25-million\/\"},\"wordCount\":705,\"commentCount\":1,\"publisher\":{\"@id\":\"https:\/\/antiguanewsroom.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/antiguanewsroom.com\/caribbean-airlines-record-loss-of-us-25-million\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/mlavawteztbj.i.optimole.com\/w:696\/h:399\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2020\/10\/Caribbean-Airlines-696x399-1.jpeg\",\"articleSection\":[\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/antiguanewsroom.com\/caribbean-airlines-record-loss-of-us-25-million\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/antiguanewsroom.com\/caribbean-airlines-record-loss-of-us-25-million\/\",\"url\":\"https:\/\/antiguanewsroom.com\/caribbean-airlines-record-loss-of-us-25-million\/\",\"name\":\"Caribbean Airlines Record Loss Of US$ 25 Million - 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