CL said that Saunders had advised the airline's board of directors about his intention to step down due to "personal reasons" but would stay on until a replacement is found.

Saunders succeeded fellow Englishman Peter Davies in October 2007, a few months after CL began operations in replacing the cash-strapped BWIA.

Trade and Industry Minister Mariano Browne was quoted in the local media Tuesday as saying that Caribbean Airlines "broke even last year," and that while the financial situation was "a little challenging this year," the airline's loads remained good.

CL is reported to have been one of three companies bidding to take over Air Jamaica which is being divested from state ownership.

- CMC