With its fleet grounded and flights suspended since late March, Philippine budget carrier Cebu Pacific has reported a loss of over PHP 1.2 billion (~USD $36.2 million) during the first three months of the year.
In a stock filing, Cebu Pacific said its net loss in the first quarter of 2020 was reported to be at PHP 1.183 billion – a 135% decline compared to the first quarter of 2019 (PHP 3.356 billion).
The airline also reported a drop in both passenger and cargo revenues compared to the same time period in 2019. Passenger revenues for the first quarter of 2020 was reported to be at PHP 11.4 billion – a 27.4% drop to 2019 (PHP 15.7 billion). Cargo revenues dropped 29.7 percent to P1 billion during the period from P1.4 billion 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 during the quarter due to the imposition of travel restrictions,” the airline said.
Regarding the pandemic and how it will affect the future of the airline, the airline stated:
“Given the volatile nature of this situation and the uncertainty as to when operating and demand conditions will improve, it will be premature to provide any guidance with respect to expected impact for full year 2020.”
Cebu Pacific's fleet has been grounded since March 19 after the Philippine government implemented travel restrictions to curb the spread of COVID-19.
As part of cost cutting measures, the airline laid off 150 cabin crew and senior management and executives elected to take pay cuts.