Cebu Pacific posts P9.14B net loss in 1st half of 2020 due to COVID-19 outbreak

Cebu Air Inc., the operator of Cebu Pacific and Cebgo said it posted a net loss in the first half of 2020 due to drop in revenues brought about by the impact of the COVID-19 outbreak.

The Gokongwei-led airline said net loss for the six months of the year amounted to P9.14 billion from the P7.14 billion net income earned in the same period last year. 

The company  recorded revenues amounting to P17.33  billion, 61.2 percent  lower than the P44.703 billion revenues generated in the same period last year. 

“The overall decline in revenues was brought about by the impact of the COVID-19 outbreak which started with cancellation of flights to China, Hong Kong, Macau and South Korea in varying periods due to the imposition of travel restrictions,” CEB said. 

Passenger revenues dropped by 65.5 percent to P11.50 billion from P33.352 billion earned in the six months ended June 30, 2019. 

The Group saw a 60.1 percent decline in passenger traffic from 11.2 million to 4.5 million driven by lesser number of flights by 55.6 percent coupled with a 7.3 percentage points decrease in seat load factor from 87.2 percent to 80.8 percent.

Lower average fares by 13.6 percent to P2,571 for the six months ended June 30, 2020 from =2,974 for the same period last year also contributed to the reduction of revenues. 

Cargo revenues declined by 21.7 percent to P2.221 billion for the six months  from P2.836 billion  in the same period last year mainly attributable to the decrease in volume transported in 2020 by 52.4 precent  partially offset by a higher yield primarily from chartered cargo services. 

The company incurred operating expenses of P24.318 billion, lower by 32.2 percent than the P35.891 billion operating expenses reported for the six months ended June last year. 

“ This was mostly driven by the suspension of the Group’s operations due to the COVID-19 global pandemic since a material portion of its expenses are based on flights and flight hours,” it said.

Flying operations expenses reduced by  53.6 percent to P7.049 billion from P15.201 billion incurred in the same period last year. 

While repairs and maintenance expenses dropped by 13.9 percent to P3.485 billion from P4.046 billion posted in the six months ended June last year.

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