CAL board silent on fuel surcharge and bailout plans

2026-03-30 - 03:54

Senior Reporter elizabeth.gonzales@guardian.co.tt Caribbean Airlines Ltd’s (CAL) board is staying silent on a proposed fuel surcharge and broader bailout plans, even as former finance official Brian Manning warns the situation could worsen and have serious economic fallout. Board member Prof Selwyn Cudjoe said he has no comment when contacted yesterday, as questions mount over proposals now before the Ministry of Finance, including a fuel surcharge on tickets, higher fares and the possible removal of the Tobago airbridge subsidy. Manning, a former minister in the Ministry of Finance and Opposition MP, said the financial strain facing the airline was not unexpected, pointing to global pressures on the aviation industry. “The airline industry is a notoriously difficult industry. With the dramatic increase in costs, especially in terms of fuel, it’s no surprise that there would be challenges. The airline industry was also heavily hit during COVID, where they would have incurred huge expenses and not generated significant revenues,” he said. “It is not a surprise,” he added. A Guardian Media investigation reported that Caribbean Airlines’ board met with the Ministry of Finance two weeks ago seeking a government bailout as rising fuel costs linked to international conflict continue to drive up operational expenses. Among the measures put forward were the introduction of a fuel surcharge on tickets, an increase in overall fares, the removal of the subsidy on the Tobago airbridge and the cutting of lower-revenue routes. The airline is also seeking direct State support, which sources say could include a billion-dollar debt write-off. But Manning said the proposals raise concerns, particularly the possible removal of the Tobago airbridge subsidy. “To do that would be to starve Tobago,” he said. “The subsidy on the airbridge was, one, to make it affordable for Tobagonians to come to Trinidad, and to receive their goods and services from Trinidad... also, it was to allow for more tourists to find it affordable to travel between Trinidad and Tobago.” He warned that any move to increase costs across the board could have wider economic consequences. “This government isn’t thinking about the long-term ramifications of its decision. It is simply trying to generate more revenue by increasing taxes and increasing costs and duties, and in doing so, they are simply shutting down the economy of this country,” Manning said. He also criticised the administration’s handling of State enterprises more broadly. “With the level of mismanagement taking place under this government, I would expect things to get worse going forward for CAL and other state enterprises,” he said. The proposals come as Caribbean Airlines continues to face mounting financial pressure. According to the 2026 Estimates of Recurrent Expenditure, the Government has allocated $626.84 million for principal repayment on the airline’s local loans—triple the revised $200.8 million allocated in 2025. Despite its regional reach and foreign exchange earnings, the airline has not published audited financial statements for more than eight years, limiting its ability to raise financing independently. Guardian Media understands that, without intervention, one of the options being considered is the possible shutdown of the airline. The Ministry of Finance has not yet responded to the proposals.