Cebu Air Inc., the operator of Cebu Pacific and Cebgo, said Tuesday net loss widened by 49.8 percent in the first nine months amid the travel restrictions brought about by COVID-19.
The airline unit of the Gokongwei Group said net loss amounted to P21.99 billion from January to September, up from P14.68-billion loss in the same period last year.
The group recorded revenues amounting to P9.150 billion, down by 52.7 percent from P19.342 billion it earned in the same period last year.
"The overall decline in revenues was brought about by the impact of the COVID-19 outbreak which started with cancellation of flights to China, Hong Kong, Macau and South Korea in varying periods in early 2020 due to the imposition of travel restrictions," CEB said.
The group gradually resumed more regular services including international flights, but they were still far behind the normal activity level due to ongoing flight restrictions and weak demand for travel.
Passenger revenues dropped 71.9 percent to P3.34 billion in nine months from P11.88 billion generated in the same period last year.
This was largely due to the 59.6-percent decline in passenger volume from 4.7 million to 1.9 million in line with 40.3-percent decrease in flights and the 23.2-percentage-point decline in seat load factor from 79 percent to 55.8 percent.
Cargo revenues grew by 20 percent to P4.26 billion from P3.55 billion last year on higher yield from chartered cargo services and slight increase in kilograms carried by about 7.7 percent.
The Group incurred operating expenses of P27.989 billion in nine months, down by 15.3 percent compared to the P33.064 billion operating expenses last year.
"This was primarily brought about by the group's reduced operations due to the COVID-19 global pandemic since a material portion of its expenses are based on flights and flight hours," CEB said.
Flying operations expenses declined by 44.8 percent to P4.51 billion from P8.17 billion incurred last year. Repairs and maintenance expenses went up by 28.9 percent to P7.05 billion from P5.47 billion.
Meanwhile, Cebu Pacific said it resumes flights to Camiguin from Cebu on Nov. 9, becoming the first carrier to bring back direct flights to and from the island since the pandemic.
CEB is also set to launch its newest Manila-Camiguin route on Nov. 15, 2021, as it boosts seamless connections across its widest domestic network.
“We are pleased to restart the tourism sector in the island as we enable more Juans to fly conveniently to and from this destination. We look forward to having more passengers on board as we welcome the reopening of leisure travel and prepare to paint the skies yellow again,” said Xander Lao, chief commercial officer of Cebu Pacific.
amiguin Island requires arriving tourists to create an account on cleancamiguinqr.com and upload necessary documents such as a filled-out health declaration form, along with a proof of complete COVID-19 vaccination. Apart from this, travelers should also present a negative RT-PCR (swab) test result – taken at least 72 hours before departure if from Luzon; taken at least 48 hours before departure if from Visayas and Mindanao.
Tourists will also need to upload proof of confirmed booking from an LGU-accredited establishment or a clearance from the Municipal Health Officer of the municipality if staying in a private home. Once complete, tourists need to download their ID with QR code and save a copy for presentation prior flight.
All tourists will also need to take an antigen test on their fifth day at the island.
CEB operates with 100-percent vaccinated active flying crew. It was rated 7/7 stars by airlineratings.com for its COVID-19 compliance as it continues to implement a multi-layered approach to safety, in accordance with global aviation standards.
These include daily extensive cleaning and disinfection protocols for all aircraft and facilities, antigen testing before duty for all frontliners and crew members and contactless flight procedures.