Cebu Pacific Reports ₱7.96 Billion Net Loss in Second Quarter

Cebu Pacific (CEB) reported a net loss for the second quarter 2020 of ₱7.96 billion, as compared to a profit of ₱3.79 billion for the same period last year.

Travel restrictions due to the coronavirus pandemic resulted in company gross revenues of ₱1.42 billion, a near 97% drop from ₱23.53 billion year-on-year.

CEB reported passenger traffic of 4.5 million for the first half of the year, a 60.1% fall from 11.2 million.

The flight company also reported second quarter total expenses of ₱7.71 billion from 2019’s ₱18.56 billion, a 58.5% decline.

CEB said “With the rapid escalation of the situation surrounding coronavirus disease 2019 (COVID-19), the Philippine government implemented a community quarantine which then prompted the group to suspend all its scheduled flights beginning March 19, 2020. While some sporadic arrangements for sweeper flights to assist stranded tourists did occur, for the most part, the group’s operations were virtually nil until April when some cargo flights within the Philippines and eventually to countries like Japan, Thailand, China, Hong Kong recommenced,”

CEB added “As of June 30, except as otherwise disclosed in the financial statements and to the best of the group’s knowledge and belief, there are no events that will trigger direct or contingent financial obligation that is material to the group, including any default or acceleration of an obligation,”