On Wednesday, Filipino low-cost carrier Cebu Pacific Air announced a net loss of Php 24.9 billion for full year 2021 amid last year’s continuation of travel restrictions due to the COVID-19 pandemic.
Cebu Pacific generated revenue of Php 15.7 billion in 2021, a 30 percent decrease compared to the figures in 2020. Passenger revenue slumped to Php 6.3 billion from Php 12.6 billion in the previous year. However, cargo revenue soared by 20 percent, posting a record Php 6.5 billion in revenue.
The low-cost carrier flew 3,411,000 passengers for the whole year, down by 32 percent from the previous figure. However, The first quarter of 2020 bloated that year’s figures significantly since air travel was still in full-swing pre-pandemic.
The airline’s operating expenses declined by 10 percent to Php 38.9 billion due to significantly decreased flight frequencies and cost-cutting measures implemented. These factors ballooned Cebu Pacific’s operating loss to Php 23.2 billion, 12 percent higher than the previous year’s.
Due to “higher peso translation of its US dollar debt and mark to market losses from the derivative value of its convertible bonds,” the low-cost airline posted non-core losses of Php 1.12 billion partially offset by a Php 1.4 billion gain from aircraft sale and leaseback transactions.
On the other hand, Cebu Pacific raised US$1.6 billion from various fundraising initiatives, highlighting the airline’s more positive long-term sustainability. The airline’s cash balance stood at Php 19.6 billion, relatively higher than pre-pandemic levels.
On a more positive note, the airline says it is encouraged by the bounce back of strong domestic demand for this year, as COVID-19 restrictions loosen nationwide. Cebu Pacific is bullish to recover to pre-pandemic domestic capacity by the second quarter of 2022.
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