Caribbean Airlines reports US$33 million profit

PORT OF SPAIN, Trinidad, CMC -The state-owned Caribbean Airlines (CAL) is reporting a TT$200 million (US$33.3 million) profit and chairman George Nicholas has proclaimed the airline “a profitable organisation”.



"We will close a profit of $200 million this year, even with reduced fares and increased flights. Accordingly we are able to put millions into the treasury," Nicholas said as the airline took control of the first of nine new aircraft at the Piarco International Airport.



“We have also made the first ever consecutive profit in Air Jamaica’s 50-year history, of several million US dollars,” Nicholas said of the merger between Air Jamaica and CAL last year.



But he told the ceremony that profit came against a backdrop of several obstacles.



"We know that some of our regional neighbours pay for flights to and from their country and also give our competitors subsidies, in addition to fuel hedges which amount to more than the fuel subsidy which we receive.



"As to our subsidy, there are some months when we have used it and other months when we repaid it several times over," he said.



He said while the United States government gave billions of dollars to its domestic airlines, CAL was able to pay for these nine new planes out of its own internal cash flow.



"If others knew how many millions their regional Governments pay for flights, in addition to their citizens paying for tickets, there would be some strong reaction," he said.



"We are doing things differently,” he said, adding “it has been a very tough year but Caribbean Airlines is flying routes to make money”.



Nicholas, who had earlier this year tendered his resignation following clashes with then line minister Austin Jack Warner, said the new planes would help foster "much improved regional integration" and that CAL was beginning a global initiative by preparing to fly to Mumbai, India and Johannesburg, South Africa early next year and Nigeria, Brazil and another possible two US gateways.



"Only a few could have imagined in the recent past that this could have occurred," he said.



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