MANILA - Cebu Pacific has raised P40.5 billion in funds to sustain operations and prepare for recovery, the airline said on Tuesday, a day after reporting another quarter in the red.
The country’s biggest airline said it closed 3 major fundraising transactions, which include a P16 billion loan from government financial institutions and private banks, a P12.5 billion issuance of convertible preferred shares, and a P12 billion issuance of convertible bonds.
Cebu Air Inc, the operator of the airline and its sister firm Cebgo, disclosed to the stock market that the transactions are part of a broader proactive and comprehensive crisis response to reposition the business for the new normal.
“The airline remains highly vigilant of market and competitive changes and the dynamically evolving situation. The airline will evaluate appropriate further measures as it deems necessary to remain competitive given this most difficult operating environment,” the company said.
On Monday, Cebu Pacific also disclosed that it booked a net loss of nearly P7.3 billion in the first quarter, which was more than six times the P1.18 billion loss it sustained in the same period last year.
Last year, the airline booked a net loss of P22.2 billion last year as the COVID-19 pandemic nuked travel demand.
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