MANILA, Philippines — Losses of budget carrier Cebu Pacific expanded last year due to the persisting impact of the pandemic.
Cebu Pacific operator Cebu Air Inc. reported a P24.9 billion net loss in 2021, bigger than the P22.2 billion net loss incurred a year earlier.
While it started 2021 with optimism as vaccination rollout began, Cebu Pacific said the emergence of new COVID variants and surging cases last year led once again to strict lockdowns that tempered growth of the company’s operational and financial performance.
As a result, Cebu Pacific generated revenues of P15.7 billion, 30 percent lower year-on-year.
The carrier attributed the decline to the 50 percent drop in passenger revenue to P6.3 billion from P12.6 billion in 2020.
With a total of 34,463 flights, Cebu Pacific said it flew 3.4 million passengers in 2021, 32 percent lower than the previous year due to a high base in first quarter of 2020.
In January to March of 2020 alone, before the onset of the air travel lockdown, Cebu Pacific was able to fly close to 4.4 million passengers on about 30,000 flights.
Cargo operations, meanwhile, continued to flourish in 2021, according to the airline.
The business posted record sales of P6.5 billion in 2021, up 20 percent year-on-year.
Total operating expenses declined by 10 percent to P38.9 billion given the limited flying operations, supplemented by the various cost cutting initiatives undertaken by the company, such as right-sizing of its network, fleet, and manpower.
“Amidst the losses and uncertainty brought about by the pandemic, Cebu Pacific stayed resilient and ensured its long-term sustainability,” the carrier said.
Aside from cost saving initiatives, Cebu Pacific successfully raised over $1.6 billion from various fund-raising initiatives.
“This not only allowed for an even longer liquidity runway, but also resulted in a stronger balance sheet, with cash balance of P19.6 billion, surpassing even the pre pandemic cash levels,” it said.
The airline said its management is encouraged by strong domestic demand becoming apparent, with bookings significantly increasing over the past few months.