Cebu Pacific net loss deepened to P24.9B in ’21 on fewer flights

Budget carrier Cebu Pacific saw its net loss widen to P24.9 billion last year from P22.2 billion in 2020 as a fresh surge in COVID-19 cases resulted in fewer flights and passengers.

The rollout of vaccinations beginning in March last year sparked optimism for normalization of operations but the Delta variant derailed the path to recovery, Cebu Pacific said in a disclosure on Wednesday.

“[As] new COVID-19 variants emerged and cases surged, strict lockdowns were once again implemented which tempered growth of Cebu Pacific’s operational and financial performance,” the low-cost airline said.

It flew 3.4 million passengers via 34,463 flights last year, lower than 5 million passengers via 41,804 flights in 2020.

Total revenues for the period dropped by 30 percent to P15.7 billion as passenger revenues fell by 50 percent to P6.3 billion from P12.6 billion year-on-year. Revenues from cargo operations, meanwhile, rose by 20 percent to P6.5 billion last year.

The confluence of limited flying operations and cost-cutting measures reduced operating expenses by 10 percent to P38.9 billion despite higher fuel prices. To save money, Cebu Pacific conducted right-sizing of its network, fleet and manpower.

The airline booked P1.12-billion noncore losses because of “higher peso translation of its US dollar debt and mark to market losses from the derivative value of its convertible bonds.” This, as it registered a P1.4-billion gain from aircraft sale and leaseback transactions.

It was able to rake in over $1.6 billion from various fundraising initiatives to complement its cost-saving measures.