CEBU Air Inc. has approved a restructuring plan that will wipe out its P16.27- billion deficit.
Cebu Air, operator of budget carrier, Cebu Pacific said in a disclosure to the Philippine Stock Exchange, its board of directors approved a restructuring plan to use the company’s additional paid-in capital worth P20.659 billion as shown in the audited financial stations as of Dec. 31, 2023 to eliminate the retained earnings deficit.
According to the disclosure, the corporation has approved the proposal to eliminate the deficit amounting to P16.27 billion by applying a portion of its additional paid-in capital.
“After the deficit is completely eliminated, the corporation’s additional paid-in capital as of Dec. 31, 2023, will be reduced to P4.39 billion,” CEB said.
CEB is optimistic about sustaining the recovery of its operation with the recent agreement with Airbus to purchase up to 152 aircraft worth $24 billion or P1.4 trillion, the largest aircraft order in Philippine aviation history.
Under the memorandum of understanding, the aircraft orders cover up to 102 Airbus 321neo, and 50 A320neo Family.
As of the end of March this year, CEB was operating 87 aircraft of which 35 are owned and 52 are leased. This is slightly higher compared to the 2023 total fleet of 85.
The Group’s revenues amounting to P25.3 billion for the period ended March 31 is 21.2 percent higher than the P20.9 billion revenues earned in the same period last year.
The overall increase in revenues was primarily driven by the growth in passenger volume, especially for international destinations.
