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CEB suffers P14.69-B net loss in 9 months

Cebu Air Inc., operator of Cebu Pacific (CEB), bled P14.69 billion for the first 9 months of the year a 317 per cent drop versus the same period in 2019 after grounding most of its fleet due to the pandemic.

“The disruption in the group’s operations due to the COVID-19 crisis had a negative impact on its financial condition and results of operations during the period,” the airline confirmed. CEB revenues plummeted 70 percent to P19.34 billion from P63.63 billion in the comparative period.

Passenger revenues dipped 74.5 percent to P11.89 billion as passenger traffic fell 72 percent to 4.7 million. Fares averaged P2,537, down 9.2 percent.

Cargo revenues are also down 18 percent to P3.55 billion as volumes plummeted.

The impact of the COVID-19 outbreak which started with cancellation of flights to China, Hong Kong, Macau and South Korea in varying periods due to the imposition of travel restrictions pulled down revenues.

CEB resumed commercial passenger operations on June 3 for domestic flights but on a limited scale. However, ” it is still far behind its normal activity level”.

Nevertheless, CEB believes m it remains resilient airline despite the challenges and plans to raise $500 million in fresh capital by issuing convertible preferred shares and doing private placement of convertible bonds.

The airline is also selling its 35 percent stake in SIA Engineering (Philippines) Corp. for $7.74 million.


Source: Manila Bulletin (https://mb.com.ph/2020/11/13/ceb-suffers-p14-69-b-net-loss-in-9-months/?utm_source=rss&utm_medium=rss&utm_campaign=ceb-suffers-p14-69-b-net-loss-in-9-months)

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