CAL makes $42m profit in 2018

For the first time in at least five years, Caribbean Airlines has reported a $42 million profit, although its performance continues to be dragged down by the loss-making airbridge.

In a statement yesterday, the company released a summary of its unaudited statements, announcing a $111 million operating profit.

The breakdown shows that while the airline recorded $158 million in earnings before interest and tax on international routes, it made negative $47 million on the airbridge. Overall, the company’s net income from international flights and other operations was $109 million, while domestic airbridge operations made a net loss of $67 million.

Total revenues increased by 11 per cent to $292 million.

Fuel costs were the company’s biggest expense, costing $597 million in 2018 versus $471 in 2017, which the company attributed to the higher price of oil on the international market.

The last time CAL, which is majority-owned by the Government, presented annual financial statements to the public was in 2015, for its 2014 performance, when it recorded a US$60 million loss.

The company is on trend to meet and even exceed its goals for returning to profitability.

In an interview last April, Garvin Medera, CAL's CEO, then just about six months on the job, said the company's plan was to return to profitability in two years.

“We expect by financial year 2019 to at least break even. We plan to reduce losses in 2018 and by 2019 break even,” Medera said then.

Via yesterday's release he attributed the financial results to the airline's focus on an improved experience for customers, more efficient use of resources and better utilisation of the route network.

"Profitability gives us a strong foundation to develop the business further, including improved training and support for our employees, a refreshed brand, added enhancements to the customer experience, and more advances in the use of technology, both inside the business and customer facing. By making the right investments now, we can yield extremely positive long-term results," he said.

Among its enhancements over the last year, the airline added Cuba to its schedule, as well as launching its free wireless in-flight entertainment feature, Caribbean View and Caribbean Plus, extra legroom in economy for early seats at an additional cost.

The airline also announced last November it would upgrade and replace its current fleet with 12 new Boeing 737 Max 8 jets, but owing to safety concerns about the aircraft – and its grounding internationally after two fatal plane crashes in October and March, respectively – the airline sought legal advice on how to proceed with the contract. On Wednesday, CAL said it had not yet made a decision on whether it would go ahead with the deal.