Cebu Pacific Inc. (CEB) yesterday said its net loss has widened to P24.9 billion in 2021 from P22.2 billion in 2020 due to significant decline in the number of air passengers driven by strict lockdowns.
CEB is optimistic domestic operations will return to pre-pandemic level by the second quarter.
In a disclosure at the Philippine Stock Exchange, CEB in 2021 had 34,463 flights and flew 3.4 million passengers, 32 percent lower than previous year due to a high base in first quarter of 2020. Before the onset of the air travel lockdown in March 2020, CEB flew close to 4.4 million passengers on about 30,000 flights during first quarter of 2020.
CEB generated P15.7 billion in revenues in 2021, 30 percent below 2020 mostly driven by the 50-percent decline in passenger revenue to P6.3 billion from P12.6 billion in 2020.
Cargo operations posted record sales of P6.5 billion, a 20 percent increase versus 2020.
Despite higher fuel prices, total operating expenses declined by 10 percent to P38.9 billion given the limited flying operations, supplemented by the various cost cutting initiatives undertaken such as right-sizing of its network, fleet, and manpower.
CEB posted an operating loss of P23.2 billion, 12 percent bigger than the previous year.
CEB also incurred non-core losses of P1.12 billion, driven primarily by higher peso translation of its US dollar debt and mark to market losses from the derivative value of its convertible bonds, which were partially offset by P1.4 billion gain from aircraft sale and leaseback transactions.
CEB management is encouraged by strong domestic demand becoming apparent, with bookings steeply increasing over the past few months.
CEB anticipates recovery to its pre-covid domestic capacity levels by second quarter of 2022.
