Caribbean Airlines this week denied a report that it is in dire financial straits and in danger of shutting down.
In a statement released Tuesday, the flag carrier of both Jamaica and Trinidad and Tobago alluded to a report from the Trinidad and Tobago Guardian claiming that airline leaders were seeking a bailout from the government of Trinidad and Tobago.
The article said Caribbean Airlines, often abbreviated as CAL, is looking for additional support as jet fuel prices rise in connection with the war in Iran. The newspaper reported that at least two directors believe the airline should go out of business or be sold.
“The airline’s board of directors categorically rejects any rumors suggesting that Caribbean Airlines is facing closure,” CAL said in response. “There has been no discussion regarding the closure of the airline. Caribbean Airlines continues to actively review its operations as part of ongoing efforts to strengthen the business and position the airline on a more stable and sustainable footing.”
Officials also confirmed that all flight operations are continuing as normal.
The airline did not specifically deny that it is seeking a bailout.
The Trinidad and Tobago Guardian said CAL recently approached the Ministry of Finance with measures it was willing to take to secure additional investment, including implementing a fuel surcharge on tickets and paring back low-revenue routes.
Relief could come in the form of a debt write-off worth about $1 billion, the newspaper said.
CAL serves destinations throughout the Caribbean and helps link the region to the U.S., with regularly scheduled flights to and from Miami, Fort Lauderdale, and Orlando in Florida and New York-JFK.
The airline is owned by the governments of Trinidad and Tobago and Jamaica, with Trinidad and Tobago holding the majority of the company.
CAL has experienced financial difficulties in the past and, according to the Guardian, has not released a properly audited financial statement in years.
