PORT OF SPAIN, Trinidad= – The state-owned Caribbean Airlines (CAL) Tuesday, “categorically” rejected rumours suggesting that the airline is facing closure.
“There has been no discussion regarding the closure of the airline. Caribbean Airlines continues to actively review its operations as part of on-going efforts to strengthen the business and position the airline on a more stable and sustainable footing,” the airline said in a statement.
On Sunday, Guardian Media Limited reported that CAL is seeking a financial bailout from the Kamla Persad-Bissessar government to counter the rising cost of fuel as a result of the Middle East was involving the United States, Israel and Iran and its impact on the carrier’s operational costs.
GML reported that it understood that the CAL board had put forward several options to the Ministry of Finance during a meeting two weeks ago to cushion the airline, including the introduction of a fuel surcharge on tickets, the removal of the subsidy on the airbridge, an increase in the overall cost of tickets and a further slashing of lower revenue routes.
GML said that CAL is also seeking further financial support from the state, quoting sources as saying this “could come in the form of a billion-dollar debt write-off”
The GML quoting from the 2026 budget document, Details of Estimates of Recurrent Expenditure, dated March 25, 2026, noted that the government has allocated TT$626.84 (One TT dollar=US$0.16 cents) million for the principal repayment on the CAL’s local loans and that the sum is triple the revised allocation for principal repayment of $200.8 million in fiscal 2025.
“As a last resort, without any support, there is the possibility of shutting down the airline,” GML reported.
But in its statement, CAL said it is “aware of recent public discussions following a media report” and that the airline wanted to reassure “customers, partners and stakeholders that operations continue as normal.
“The airline’s Board of Directors categorically rejects any rumours suggesting that Caribbean Airlines is facing closure,” and that it is continuing to review its operations “focused on ensuring the delivery of reliable service and maintaining strong connectivity across the airline’s network.
“Work on the airline’s audited financial statements is well underway. Additionally, the airline is progressing the recruitment of key senior management positions to further strengthen leadership and support long-term strategic direction,” CAL said.
The airline thanked “all customers and stakeholders for their continued confidence and assures that every effort is being made to ensure the airline’s long-term sustainability and continued service to the region”.
