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Successful fundraising provides “cash runway” out of pandemic losses says Cebu Pacific
March 30th 2021
Previously profitable Philippines LCC, Cebu Pacific (CEB), today reported a net loss of 22.2 billion pesos (US$457.9 million) for the 12 months to December 31, 2020, falling into the red from a net profit of 9.1 billion pesos a year ago. Read More » The "heavy impact of the unprecedented COVID-19 crisis” resulted in a revenue decline of 73%, to 22.6 billion pesos, CEB said in a filing to the Philippine Stock Exchange. "With health and safety concerns resulting in the decrease of passenger confidence and heightened travel restrictions, CEB’s operational and financial performance was severely affected," it said. "In 2020, CEB flew five million passengers, 78% fewer than in 2019 and operated 41,804 flights, 71% lower than in the previous year." Fundraising efforts, including the issuing of new convertible preference shares and a 10-year loan facility, had provided the company with a cash runway of up to 28.5 billion pesos and demonstrated the confidence of shareholders and banking institutions in the airline, CEB said.
