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Cebu Pacific reported a P24.9-billion net loss in 2021
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Revenue declined 30% mostly due to the 50% drop in passenger revenue
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Cargo operations continued to flourish with record sales of P6.5 billion, up 20% year-on-year
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Cebu Pacific sees return to pre-COVID domestic capacity levels by Q2 2022
The effects of the COVID-19 pandemic on the aviation industry last year remained apparent with the country’s biggest low-cost airline Cebu Pacific reporting a bigger net loss of P24.9 billion from P22.2 billion net loss in 2020.
Revenue in 2021 declined 30% to P15.7 billion, mostly due to the 50% drop in passenger revenue to P6.3 billion from P12.6 billion in 2020, the low-cost carrier said in a statement.
Cargo operations, on the other hand, continued to flourish in 2021, posting record sales of P6.5 billion, a 20% increase year-on-year.
Cebu Pacific said it began 2021 with optimism as the vaccination rollout began in March, paving the way for the easing of travel restrictions. However, as new COVID-19 variants emerged and cases surged, strict lockdowns were once again implemented, tempering growth of the airline’s operational and financial performance.
With 34,463 flights, Cebu Pacific served 3.411 million passengers in 2021, 32% less than the previous year due to a high base in the first quarter of 2020.
In the first quarter of 2020 alone, or before the onset of the air travel lockdown in March 2020, Cebu Pacific flew close to 4.4 million passengers on about 30,000 flights.
Despite higher fuel prices, total operating expenses declined by 10% to P38.9 billion given limited flying operations, supplemented by cost-cutting initiatives such as right-sizing of network, fleet and manpower, the airline said. With these, Cebu Pacific posted an operating loss of P23.2 billion, 12% bigger than in the previous year.
It also incurred non-core losses of P1.12 billion, driven primarily by higher peso translation of its US dollar debt and mark to market losses from the derivative value of its convertible bonds, which were partially offset by a P1.4-billion gain from aircraft sale and leaseback transactions.
Aside from cost-saving initiatives, the airline raised over US$1.6 billion from various fund-raising initiatives. This, it said, not only allowed for an even longer liquidity runway but also resulted in a stronger balance sheet with cash balance of P19.6 billion, surpassing even pre-pandemic cash levels.
Cebu Pacific said its management is encouraged by strong domestic demand, with bookings steeply increasing over the past few months. The airline said it anticipates recovery to pre-COVID domestic capacity levels by the second quarter of 2022.
