Dec 2006 Financial News

BWIA Releases Year End Results for 2005

Dec 12, 2006

Results for the Year Ended December 31, 2005

BWIA West Indies Airways Limited (BWIA) reported a Loss Per Share (LPS) of 13 cents for the year ended December 31, 2005. This loss was 13.33 per cent less than 2004’s LPS of 15 cents. However, it should be noted that the LPS for 2005 was calculated on a weighted average number of common shares in issue during the year- 1,330,942,368 shares. While the issued share capital in 2004 was 637,901,610 shares.

While there was a minimal increase in Operating Revenues of 0.75 per cent to $1.758 billion, Operating Expenses increased by a larger margin of 8.43 per cent to $1.934 billion. One of the largest contributors to the increase in Operating Expenses was Fuel costs which rose 39.57 per cent to $518.732 million. Thus, the resulting Loss from Operations amounted to $175.98 million compared to $38.60 million for the year ended December 31, 2004. This represented an increased loss of 355.90 percent.

Non Operating Income for the period amounted to $18.42 million compared to a Non Operating Expense of $49.57 million in the corresponding period in 2004. However, this was not enough to offset the large increase in Loss from Operations as the Loss After Taxation for 2005 amounted to $165.52 million compared to $96.21 million in 2004. Thus, the Loss After Taxation for the period increased by 72.04 per cent, year on year.

On December 15, 2006 the Trinidad and Tobago Securities and Exchange Commission (TTSE) will have a Hearing for BWIA pursuant to section 134 of the Securities Industry Act, 1995. The Hearing will deal with authorizing the de-listing of BWIA shares and imposing for the protection of investors such conditions, if any, as it thinks fit.

Additionally, the Company will hold its 12th Annual Meeting of Shareholders at Crowne Plaza Hotel on December 28, 2006 at 1:00pm. The main item on the agenda is a Special Resolution of the Shareholders of the Company- which is to sell, lease or assign the operating assets of the Company on an “as is where is basis’ for fair value on or before December 31, 2006. This is to facilitate the shutting down of BWIA.

BWIA will be wound up on December 31, 2006 and a new entity, Caribbean Airlines, will be launched on January 1, 2007. The new airline will not be listed.

Gia Singh
WISE Research Team