Cebu Pacific refunds hit P2.7B as virus grounded flights
Cebu Pacific said refunds to customers for flights canceled due to the COVID-19 crisis already reached P2.7 billion, with billions of pesos more to be returned.
The budget airline assured passengers their refund requests would be processed but it could take up to six months from the time of filing.
“We understand how difficult this situation is for everyone and we sincerely apologize for the delay,” Cebu Pacific said in an update to flyers this week.
The latest figure was higher by P300 million from its previous update last September. At the time, Cebu Pacific also suggested total refund request during the pandemic reached nearly P5 billion.
Cebu Pacific said it was currently processing refund requests filed in June.
Like other airlines, it was severely hit by the global health crisis while strict lockdowns grounded flights for extended periods during the summer travel season and in August.
The industry is currently operating a fraction of its prepandemic network as broad travel restrictions remain in place and customers defer their travel plans.
Refunds add to the financial strain at a time when airlines are struggling to generate revenues.
In its update, Cebu Pacific pointed to efforts to raise fresh capital. That includes an earlier-announced plan to raise $500 million selling shares and bonds to strengthen its balance sheet.
Local carriers will no longer have to worry about new refund filings with the passage of the Bayanihan to Recover as One Act last September. While in effect, the law allows airlines to instead issue travel vouchers.
Cebu Air Inc., which operates Cebu Pacific, earlier announced a P9.1-billion loss in the first half of 2020, during which there was an almost three-month strict lockdown of major cities across the Philippines.
The loss reverses a P7.14-billion profit in the January to June period of 2019.
