News
Cebu Pacific reports demand recovery but Q3 net loss widens to US$162.8 million
November 11th 2021
Budget carrier, Cebu Pacific (CEB), has recorded a third quarter revenue rise of 62% but experienced a wider net loss of P8.2 billion (US$162.8 million) on the back of continuing travel restrictions in the Philippines. Read More » The latest result was up from a loss of P5.54 billion in the same period a year ago despite the increase in revenue to P3.25 billion and a 69% boost in flights operated compared with last year. Passenger revenue surged to P1.31 billion, 246% higher year-on-year, on the back of a low base in last year’s third quarter when CEB restarted its operations. Cargo operations also contributed to the result with revenue rising 9%, to P1.45 billion. Ancillary revenue grew 63% year-on-year, at P484 million. CEB’s operating expenses increased 7%, at P9.4 billion, allowing the airline group to narrow its operating loss to P6.15 billion from P6.74 billion in the same months in 2020. “We continuously pursue higher aircraft utilization and implement various cost reduction initiatives to ensure we maintain the lowest possible cost amidst an environment of higher fuel prices and peso depreciation,” said CEB chief financial officer, Andrew Huang. Although the airline was still subject to COVID-19 travel restrictions during the quarter, it managed to fly 704,000 passengers, 10% higher than transported in the second quarter. “More recently, with COVID-19 case counts and positivity rates decreasing to levels of February 2021, Metro Manila has recently de-escalated to Alert level 2, setting the stage for a stronger demand recovery,’’ it said. CEB flew almost two million passengers from January to September on 21,549 flights.
