Cebu Air Inc., the operator of Cebu Pacific and Cebgo said its net loss ballooned in the first nine months of the year mostly because of flight cancellations brought about by COVID-10 outbreak.
The Gokongwei-led airline said net loss amounted to P14.68 billion in the January to September period, a 316.9 percent drop from the P6.76 billion net income earned in the same period last year.
The Group generated revenues amounting to P19.34 billion for the nine months, 69.6 percent lower than the P63.62 billion revenues earned 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 74.5 percent to P11.88 billion for the nine months ended September from P46.59 billion earned in the same period last year.
The Group saw a 71.9 percent decline in passenger traffic from 16.7 million to 4.7 million driven
by lesser number of flights by 66.3 percent coupled with a 8.7 percentage points decrease in seat load factor from 87 percent to 79 percent.
Lower average fares by 9.2 percent to P2,537 for the nine months period from P2,794 for the same period last year also contributed to the reduction of revenues.
Cargo revenues declined by 17.7 percent to P3.553 billion from P4.31 billion last year mainly attributable to the decrease in volume transported in 2020 by 55.8 percent partially offset by a higher yield primarily from chartered cargo services.
The Group incurred operating expenses of P33.064 billion for the nine months ended September this year, lower by 38.7 percent than the P53.939 billion operating expenses reported 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,” CEB said.
Flying operations expenses reduced by 63.8 percent to P8.173 billion from P22.555 billion incurred in the same period last year.
This was largely accounted for by the 43.4 percent decrease in average published fuel MOPS price to
$43.96 per barrel from $77.66 per barrel coupled with the strengthening of the Philippine Peso against the US Dollar.