Cebu Air Inc., the operator of budget carrier Cebu Pacific, saw its net loss widening in the first semester, largely because of the adverse impact of the pandemic on its operations.
The company told the stock exchange that its net loss reached P13.79 billion in the first six months of the year, larger than the P9.14-billion loss it recorded the year prior.
Revenues were also 66 percent lower at P5.90 billion from P17.33 billion due to the decline in earnings from its passengers and ancillary operations. Passenger revenues dropped by 82.4 percent to P2.03 billion from P11.51 billion as passenger volume plunged by 73.4 percent to 1.2 million from 4.5 million the year prior. This led to its ancillary revenues sinking by 70.6 percent to P1.06 billion from P3.61 billion.
Its cargo operations, meanwhile, helped cushion the impact of the drop in both passenger and ancillary revenues. Cargo revenues rose by 26.7 percent to P2.82 billion from P2.22 billion as it yielded more chartered cargo flights during the first semester.
Cebu Pacific currently operates 50 domestic and 11 international routes through its 74-aircraft fleet.
“The group believes that it remains a resilient airline despite the adverse impact of the Covid-19 outbreak,” the company’s disclosure read.
It noted that given the volatile nature of this situation and the uncertainty as to when operating and demand conditions will improve, “it will be premature to provide any guidance with respect to expected impact in succeeding periods.”
Earlier Cebu Pacific officials said the airline is hoping that its operations will go back to normal by 2022, citing inoculation initiatives from both the government and the private sector.
However, the Philippines has yet to vaccinate the majority of its population with Reuters’ Covid-19 Tracker reporting an 11.6-percent inoculation-to-population rate.
The tracker also noted that Covid-19 infections are increasing in Philippines, with 9,087 new infections reported on average each day.