Cebu Pacific said Wednesday it incurred a P24.9-billion net loss in 2021 following the P22.2-billion loss in 2020, amid the lingering COVID-19 pandemic and the travel lockdown.
The airline unit of the Gokongwei Group said it flew 3.4 million passengers in 2021, down 32 percent from 2020, which benefitted from a high base in the pre-pandemic first quarter. Before the onset of the air travel lockdown in March 2020, Cebu Pacific flew nearly 4.4 million passengers on about 30,000 flights.
The airline generated P15.7 billion in revenues in 2021, or 30 percent below 2020. This was driven by the 50-percent decline in passenger revenue to P6.3 billion from P12.6 billion billion in 2020.
Cargo operations continued to flourish in 2021 as it posted record sales of P6.5 billion, a 20 percent increase from 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.
Cebu Pacific posted an operating loss of P23.2 billion, or 12 percent bigger than the previous year.
The airline also incurred non-core losses of P1.12 billion, on 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.
Amid 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 raised over $1.6 billion from various fund-raising initiatives. This not only allowed for an even longer liquidity runway, but also resulted in a stronger balance sheet with cash balance of P19.6 billion, surpassing even the pre pandemic cash levels.
