The board of Cebu Air Inc., the operator of Cebu Pacific, approved a plan to use a portion of its additional paid-in capital to address a retained earnings deficit.
The budget airline said the restructuring plan uses P20.65 billion from its additional paid-in capital, as reflected in the December 2023 audited financial statements, to eliminate a deficit of P16.26 billion.
Cebu Air’s remaining additional paid-in capital will stand at P4.38 billion once the deficit is eliminated.
Cebu Air said the plan aims to improve the company’s overall financial health.
Cebu Pacific announced on July 2 that it signed a binding memorandum of understanding (MOU) with Airbus for the purchase of up to 152 A321neo aircraft for $24 billion or P1.4 trillion based on list prices, the largest aircraft order in Philippine aviation history.
The purchase agreement to finalize the transaction is expected to be completed in the third quarter of the year.
Cebu Pacific reported a net income of P2.24 billion in the first quarter of 2024, up by nearly 108 percent from P939 million in the same period last year.
Cebu Pacific generated P25.3 billion in revenue in the first three months, a 21-percent increase from the previous year.
It flew over 5.5 million passengers in the first three months, marking a 14-percent increase from the same period last year and a 3-percent growth from the preceding quarter.
Cebu Pacific flies to 35 domestic and 25 international destinations spread across Asia, Australia and the Middle East.
