CAL cuts routes after $128m losses

Minister of Transport and Civil Aviation Eli Zakour said Caribbean Airlines has begun cutting several regional routes after the airline recorded more than TT$128 million in losses linked to its 2023 Eastern Caribbean expansion.

Speaking in the Lower House today, Zakour said the expansion initiative, introduced under the previous board of directors and supported by the former government, aimed to strengthen regional connectivity, tourism and trade across the Caribbean.

However, he said the commercial projections used to justify the expansion did not match actual market conditions.

Zakour said the current board established a route oversight committee in 2025 to review route performance, profitability and strategic alignment.

“That review has confirmed that several routes launched under the 2023 expansion programme were introduced without adequate commercial justification and have generated sustained financial losses for the airline since inception,” he said.

Zakour outlined several network changes already implemented by Caribbean Airlines.

The Jamaica to Fort Lauderdale route was discontinued from November 2, 2025 after generating losses of US$7.2 million, while the Trinidad to Puerto Rico service ended on January 10, 2026 after losses of US$4.92 million.

Additional changes are scheduled to take effect from June 1, 2026.

These include withdrawal from the Dominica market, which recorded losses of US$730,000, and the St Kitts market, which recorded losses of US$1.65 million as of April 2026.

Zakour also announced the discontinuation of the non-stop Guyana to Suriname service, which incurred losses of US$1.24 million.

Flights to Martinique and Guadeloupe will also be reduced from four weekly services to two weekly services after the routes recorded losses of US$1.23 million and US$1.86 million respectively.

Zakour said the combined losses on the affected routes amounted to US$18.84 million as of April 2026.

“The discontinuation and service adjustments to the routes would allow these losses to be converted into operational savings and improve financial stability,” he said.

Passengers with bookings beyond the discontinuation dates will be contacted directly by Caribbean Airlines or through their travel agents.

Zakour said affected passengers would be offered alternative travel arrangements where possible, full refunds for unused tickets, or future travel credits subject to conditions.

He also said Caribbean Airlines was working to finalise a codeshare agreement with a regional airline partner to provide customers with access to a wider network through coordinated schedules and integrated ticketing.

Zakour said the airline would continue investing in operational reliability, customer service improvements, fleet modernisation and “disciplined route planning grounded in clear financial criteria.”