Has One Year To Reverse Fortune
6 September 2021
Low cost carrier Cebu Pacific (CEB) has lost another US$276 million in the second quarter of this year up 19% from US$159 million it recorded in the second half of 2020. The airline lost $146 million in the first half of this year or a total first half loss of $419 million.
Passenger revenues were down 82% as compared to the figures recorded in the first half of 2020. Ancillary revenues were likewise down 71% first half this year. Cargo revenues were up 27% due to special chartered cargo flights, mostly vaccine transport.
CEB earlier raised over $240 million through the sale of convertible preferred shares to avoid bankruptcy, and an additional $240 million through sale of convertible bonds to IFC and an American private equity firm.
The $480 million additional equity will buy the airline one year of liquidity to change its fortune, otherwise it will need to raise additional capital to support its business operation.
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