Cebu Pacific posts a net loss of P24.9-B in 2021

MANILA — Cebu Pacific said Wednesday it suffered a net loss of 24.9 billion pesos for 2021 due to the continued impact of mobility restrictions to stem the COVID-19 pandemic.

The optimism brought by the rollout of the COVID-19 pandemic vaccine program in March last year was offset by new variants that caused a rise in cases and strict lockdowns that ‘tempered growth’ of its operations and financial performance, the airline told the Exchange.

It carried 3.4 million passengers for the year with 34,463 flights, 32% less than the previous year due to the high base of 2020 with almost 4.4 million passengers carried in the first quarter, said Cebu Pacific.

Cebu Pacific said it generated 15.7 billion pesos in revenue in 2021, 30% less than in 2020, mainly due to passenger revenue falling to 6.3 billion pesos from 12.6 billion. pesos in 2020.

Cargo operations, meanwhile, “continued to thrive” in 2021 with record sales of P6.5 billion, up 20% from 2020, the airline said.

“Amid the losses and uncertainty caused by the pandemic, the CEB has remained resilient and ensured its long-term sustainability,” he said.

“In addition to its cost reduction initiatives, it has successfully raised over $1.6 billion through various fundraising initiatives. This has not only enabled an even longer liquidity trail, but has also resulted in a stronger balance sheet,” he added.

Airlines are betting on “revenge travel” to boost demand as Metro Manila and more than 40 other regions across the country are moved to Alert Level 1.

With the increase in sales, Cebu Pacific said it expects to return to pre-pandemic domestic capacity by the second quarter of 2022.

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