Cebu Pacific operator reports P24.9-B loss in 2021

Cebu Pacific operator Cebu Air Inc. on Wednesday reported higher losses in the past year as the country reimposed strict lockdowns in response to COVID-19 resurgence.

Cebu Air's net loss widened to P24.9 billion in 2021, up from P22.2 billion in 2020. Before the pandemic hit, the company's net income stood at P9.12 billion in 2019.

The company also reported non-core losses of P1.12 billion due to the exchange rate of its US dollar debt into the Philippine peso, along with the derivative value of its convertible bonds.

The losses were partly offset by the company’s sale of its aircraft and leaseback transactions which amounted to P1.4 billion. It also raised over $1.6 billion from fund-raising activities.

“CEB started 2021 with optimism as vaccination rollout began in March 2021, which paved the way for the government to ease travel regulations,” Cebu Air said in a statement.

“However, as new COVID-19 variants emerged and cases surged, strict lockdowns were once again implemented which tempered growth of CEB’s operational and financial performance,” it added.

Cebu Air operated 34,463 flights covering 3.411 million passengers in 2021, 32% lower than the previous year due to the high base recorded in the first quarter of 2020 prior to the COVID-19 pandemic.

Revenues for the year fell by 30% to P15.7 billion, due mainly to the 50% drop in passenger revenue to P6.3 billion, while cargo operations jumped by 20% to a record P6.5 billion.

“CEB management is encouraged by strong domestic demand becoming apparent, with bookings steeply increasing over the past few months. With this, CEB anticipates recovery to its pre-COVID domestic capacity levels by second quarter of 2022,” it said.

Shares in Cebu Air Inc. closed Wednesday up by P1.10 or 2.60% to P43.40 apiece versus Tuesday’s finish of P42.30. — VBL, GMA News