CEB Reports $440 Million Net Loss

10 November 2021

Budget carrier Cebu Pacific (CEB) saw net losses grow to US$440 million amidst lower revenues arising from reduced passenger volume and flight activity from January to September this year.

CEB reported the net loss to be 49.8 percent higher than the US$293.7 million (P14.686 billion) net loss incurred in the same period in 2020.

Revenues plunged by 52.7 percent during the nine-month period to $183 million (P9.15 billion) from last year’s $386.8 million (P19.34 billion), attributed to the COVID-19 pandemic.

Passenger revenues in the nine months fell by 71.9 percent year-on-year to P3.34 billion as passenger volume plummeted by 60 percent to 1.9 million from 4.7 million.

The decline in passenger volume was in line with less number of flights by 40.3 percent, coupled with a drop in seat load factor from 79 percent to 55.8 percent.

The airline said lower average fares by 30.4 percent to P1,764 also contributed to lower revenues.

CEB however maintained that it retains in a strong balance sheet and equity position at the end of September.

“The group believes that it remains a resilient airline despite the adverse impact of the COVID-19 outbreak. The group is confident of its ability to raise cash for liquidity needs even if there were unprecedented losses incurred as a result of an expected slow recovery from this crisis,” it said.