STATE airline Caribbean Airlines Ltd (CAL) has announced it will streamline its operations for 2021 and beyond, after a decline in revenue and a loss in the first quarter of 2021.
It said 25 per cent of its workforce, approximately 450 people, is surplus to its needs and will be laid off.
It will also reduce the number of jets in its fleet.
In a release on Monday, CAL said the company will start consultation with its employees and other stakeholders on dealing with its surplus labour situation.
It said while the announcement that TT’s borders may soon reopen is welcome news, all forecasts suggested air travel will not resume at the same level as pre-covid.
So, it said, “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.
“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."AS well as cutting the number of aircraft it will also reduce its route network.
CAL’s unaudited financial results for the first quarter of 2021 showed a loss of $172.7 million (US$25.7 million) and a 75 per cent decline in revenue, compared to the same period in 2020.
The airline said these losses follow a similar downturn in 2020, which saw an operating loss of $738 million (US$109.2 million) compared to operating profits for 2018 and 2019.
Since the beginning of the covid19 pandemic and the suspension of operations at its base in TT, the airline has seen passenger numbers plummet, and flight numbers reduced to less than ten per cent of normal operations.
The airline said despite this, it continued to offer services on many of its routes and provided invaluable repatriation flights for Caribbean citizens. It said, given the financial impact of the pandemic, CAL proactively reduced costs, and Q1 2021 expenses are down 52 per cent compared to the same period in 2020. Further, the airline was kept afloat through a government-guaranteed loan and a cash injection by the government totalling US$100 million.
CAL said its passenger and cargo services continue to operate, with all the latest flight details available on www.caribbean-airlines.com.
The airline thanked its customers for their continued support.
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