Cebu Pacific posts net loss of P24.9-B in 2021, cites continued pandemic impact

ABS-CBN News

Posted at Mar 23 2022 04:26 PM

MANILA - Cebu Pacific on Wednesday said it incurred a net loss of P24.9 billion for 2021 due to the continued impact of mobility restrictions to stem the COVID-19 pandemic.

The optimism brought by the rollout of the vaccination program against the COVID-19 pandemic in March last year was offset by new variants which caused a surge in cases and strict lockdowns that "tempered growth" of its operations and financial performance, the airline told the stock exchange.

It flew 3.4 million passengers for the year with 34,463 flights, 32 percent lower than the previous year due to 2020's high base with close to 4.4 million passengers flown in the first quarter, Cebu Pacific said.

Cebu Pacific said it generated P15.7 billion in revenues in 2021, 30 percent lower compared to 2020, mostly due to the decline in passenger revenue to P6.3 billion from P12.6 billion in 2020.

Cargo operations, meanwhile, "continued to flourish" in 2021 with record sales of P6.5 billion, up 20 percent compared to 2020, the airline said. 

"Amidst the losses and uncertainty brought about by the pandemic, CEB stayed resilient and ensured its long-term sustainability," is said.

"Aside from its cost-saving initiatives, it successfully raised over $1.6 billion from various fund-raising initiatives. This not only allowed for an even longer liquidity runway but also resulted to a stronger balance sheet," it added.

Airlines are betting on "revenge travel" to spur demand as Metro Manila and over 40 other areas in the country shifted to Alert Level 1.

With increasing sales, Cebu Pacific said it is expecting to recover to its pre-pandemic domestic capacity by the second quarter of 2022.

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