Hybrid flights: Cebu Pacific finds backup with passenger traffic gone

Cebu Pacific, the country’s largest budget airline, ramped up cargo operations in the first semester of 2021 to offset the loss of passenger traffic.

Turning to “alternative revenue streams” within its cargo business, the carrier said the segment now accounted for nearly half of sales after the sharp decline in passenger revenues. “Some of these initiatives included the introduction of hybrid flights with one sector carrying passengers, while the other carries purely cargo,” Cebu Pacific said in a statement over the weekend.

International cargo is another valuable business given demand for goods such as “electronics, automotive parts, aquaculture products, medical goods, fruits and flowers.”

Cebu Pacific carried 53.8 million kilograms of cargo during the first semester alone. This included some 16.5 million COVID-19 vaccine doses from China and another 16.5 million vaccine doses transported across the country. “We continue to make sure the transport of essential goods remains unhampered as we ramp-up our cargo operations and capabilities,” said Xander Lao, chief commercial officer at Cebu Pacific.

“This past year has enabled us to pivot our business and focus on maximizing the use of our fleet, including our freighters, to ensure logistics support is fully covered,” he added.

Overall, cargo revenues went up 26.7 percent to P2.82 billion, albeit not enough to offset the fall in passenger ticket sales. During the period, parent firm Cebu Air Inc. saw net losses widen by 50 percent to P13.8 billion. In a bid to strengthen its balance sheet while weathering harsh business conditions caused by the pandemic, Cebu Air raised a total of P40.5 billion through equity and debt deals. Cebu Pacific currently operates the widest domestic network in the Philippines with 31 destinations and eight international destinations. It has a fleet of 74 aircraft, including dedicated cargo planes of two ATR freighters and one A330 freighter. INQ