To become JG Summits biggest loser
April 17, 2009
Manila- Cebu Pacific holding firm JG Summit Holdings, Inc. announced on Thursday that it suffered consolidated net loss of 694 million pesos last year due to foreign exchange translation and mark-to-market losses.
The reported losses is a dramaticreversal of the P8.61-billion net profit reported in 2007.
In a disclosure to the Philippine Stock Exchange, the investment holding firm of the family of tycoon John Gokongwei said that its low cost airline subsidiary, Cebu Air Inc. (Cebu Pacific) posted a net loss amounting to P3.26 billion for 2008 compared with a net income of P3.61 billion the year before in 2007.
Lance Gokongwei, the airline's CEO said that most of the firms losses came from fuel hedges as it locked fuel to a certain price at the height of the fuel crisis in 2008 before prices spiraled downwards at the end of the year causing massive airline losses not only to Cebu Pacific but also to the rest of the airline industry.
Consolidated revenues, however, went up 31.1 percent to P19.68 billion on increased passenger traffic and capacity and new routes and additional frequencies.