Cebu Pacific’s net loss grew 50.9% in the first semester of 2021
Flight cancellations due to COVID-19 travel restrictions slashed revenues by 66%
Cargo revenues rose 26.7% due to higher yield from chartered cargo services and 3% increase in volumes carried
Passenger and ancillary services revenues dropped by 82.4% and 70.6%, respectively
The airline said it will continue to expand its operations as more local and foreign governments begin to welcome flights into their cities
Cebu Pacific reported a net loss of P13.793 billion in the first semester of 2021, 50.9% higher than the P9.141 billion net loss incurred in the same period in 2020.
Revenues were likewise lower by 66% to P5.904 billion for the first six months of the year from P17.334 billion year-on-year, Cebu Air, Inc., which operates as Cebu Pacific, said in a regulatory disclosure.
The airline said the overall decline in revenues was brought about by flight cancellations due to the impact of the COVID-19 pandemic. It noted that while it has gradually resumed more regular flights, including international services, it is still far behind its normal activity level due to ongoing flight restrictions and weak demand for travel.
Passenger revenues dropped 82.4% to P2.030 billion for the first half of 2021 from P11.507 billion in the same period in 2020 largely due to the 73.4% decline in passenger volume from 4.5 million to 1.2 million, in line with a 55.1% fall in the number of flights. Also contributing to the decline were lower average fares during the period.
Ancillary revenues recorded a 70.6% drop to P1.059 billion from P3.606 billion as a result of reduced passenger volume and flight activity during the period.
Cargo revenues, on the other hand, grew 26.7% to P2.815 billion from P2.221 billion, mostly due to higher yield from chartered cargo services and 3% increase in volumes carried.
Operating expenses were 23.6% less at P18.589 billion from P24.318 billion. This was primarily brought about by the group’s reduced operations due to the pandemic, with a material portion of expenses based on flights and flight hours.
Cebu Pacific operates a route network serving 50 domestic routes and 11 international routes with a total of 589 scheduled weekly flights as of June 30, 2021.
The airline said it will continue to expand operations as more local and foreign governments begin to welcome flights into their cities. It also closed three major fundraising transactions totaling P40.5 billion (US$845 million) this year to address COVID-19-induced disruptions to operations and prepare for recovery.