Cebu Air posts net loss of ₧24.9B in 2021

Cebu Air Inc., the operator of budget carrier Cebu Pacific, reported a P24.9-billion net loss in 2021 still due to the adverse effect of the pandemic in the global and local travel market. 

In a statement, the carrier said it booked P15.7 billion in revenues, which is 30 percent lower than the year prior, as its passenger operations continued to suffer due to the low demand for air travel in 2021.

Last year, the Gokongwei-led airline flew a total of 3.41 million passengers last year, a 32-percent decline partly due to the higher volumes recorded during the first quarter in 2020.

The company cushioned the effects of the decline in revenues by lowering its total operating expenses by 10 percent to P38.9 billion, while also beefing up its cargo operations, which posted a 20-percent increase to P6.5 billion.

“Amidst the losses and uncertainty brought about by the pandemic, CEB stayed resilient and ensured its long-term sustainability. Aside from its cost saving initiatives, it successfully raised over $1.6 billion from various fund-raising initiatives,” the company said in a statement.

“This not only allowed for an even longer liquidity runway but also resulted to a stronger balance sheet with cash balance of P19.6 billion, surpassing even the pre pandemic cash levels.”

For 2022, the company “anticipates recovery to its pre-Covid domestic capacity levels by second quarter” given the strong domestic demand thanks to lower restrictions to travel.

Image credits: Business Mirror file photo

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