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CEB sees ‘challenging’ financial impact in Q2

Cebu Pacific (CEB)  expects  “challenging” 2nd quarter financial results and will send more aircraft into storage soon in the wake of the pandemic-induced free fall in the passenger market.

At present, the airline is still  discussing with plane manufacturer Airbus whether to delay or cancel its multi-billion dollar order of over 30 planes.

The orders  were caught in the middle of the global demand plunge of the aviation sector in the midst of the pandemic. 

Aviation was among the worst hit industry and recovery can take up to half a decade.

“Demand won’t come back in the immediate future,” acknowkedged Charo Logarta-Lagamon, Corporate Communications Director.

Already, CEB has sent nine of its planes for indefinite safekeeping at the Asia Pacific Aircraft Storage in  the desert of Alice Springs, Australia to cut costs.

The planes in storage include seven Airbus A321CEOs and two  A330s. 

Before the government reverted to a more strict lockdown Tuesday this week (August 4), placing the metropolis under modified enhanced community quarantine (MECQ) once more, CEB has been operating at  only 10 per cent of its network capacity.

The airline had to cancel 300 flights to comply with re-imposed travel sanctions, although it continued to mount cargo and sweeper flights.

CEB is scheduled to disclose its first 6 months financial results on Wednesday  next week (August 12).

The airline has to operate at 50 per cent capacity in order to be sustainable for the longer term,  Candice Iyog, Vice President for Marketing and Distribution, told reporters earlier.

Prior to the reimposition of MECQ, CEB rotated about half of its fleet of 75 planes to serve 40 to 50 flights daily.

Before the pandemic, CEB was mounting 400 to 450 flights per day.

“We do not know how long this will be drawn out,” the VP conceded.


Source: Manila Bulletin (https://mb.com.ph/2020/08/07/ceb-sees-challenging-financial-impact-in-q2/?utm_source=rss&utm_medium=rss&utm_campaign=ceb-sees-challenging-financial-impact-in-q2)

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