Still facing the impact of the COVID-19 pandemic on the travel industry, regional carrier, Caribbean Airlines has announced its decision to retrench 450 workers across its network, representing 25% of the company’s workforce.
After recording profits in 2018 and 2019, Caribbean Airlines recorded financial losses of more than US$109 million in 2020 and in the first quarter of 2021, the company has already recorded US$25.7 Million in losses.
The airline today admitted that the forecast for the travel industry in the coming months is not a good one and it has been forced to make the move to retrench employees as it has also been operating at just 10% of its previous normal operations.
And despite offering some services in some Caribbean countries, the airline has seen its passenger load plummet.
The airline’s management has determined that until air travel regains its pre-COVID momentum, the airline will need to adjust its operations to cater to a reduced scale of demand.
Caribbean Airlines believes that 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 in Trinidad and other places.
In addition to shedding staff numbers, Caribbean Airlines will also be reducing its fleet and other assets to reduce costs.
The route network is also expected to be adjusted.
After the pandemic hit and the airline was forced to ground most of its flights, it received an injection of more than US$100 million from the Trinidad and Tobago government.