(CMR) Caribbean Airlines Limited (CAL) says it has just enough cash to pay employees until the end of April. The revelation comes as it was reported in the Trinidad Express that the entity is seeking a US$65 million government-guaranteed loan to keep its operations afloat.
The airline which still operates its cargo services, has reported that its revenues have taken a major hit due to the border closures around the region and in North America. They further note that the entity’s inability to sell seats has impacted the entity’s financial position.
The entity which is owned jointly by the Government of Trinidad (84%) and the Government of Jamaica (16%) last month sent more than 60 percent of its staff, primarily pilots and other staff, on vacation leave.
While it is unclear if the Government will assist the airline with its request for proposal, other carriers globally have found themselves in a similar position.
The International Air Transport Association, IATA, latest analysis estimates that airlines will post losses totaling US$39 billion during the second quarter. With ticket refunds looming, the industry’s cash position could further deteriorate by US$61 billion in the second quarter, revealed IATA.