Cebu Pacific expects up to $79m hit from coronavirus
Cebu Pacific expects the coronavirus outbreak to impact its bottom line by up to Ps4b ($79m). The low-cost carrier estimates that it will see “a Ps3-4 billion swing on profit” should the outbreak remain unabated over the next six months. It makes this estimate based on 2003’s Severe Acute Respiratory Syndrome (SARS) outbreak, which curtailed demand for air travel for six months. The carrier has cancelled flights to China until 29 March, while reducing frequencies to Hong Kong and Macau. Meanwhile, compatriot Philippine Airlines and Philippines AirAsia have suspended flights to China, Hong Kong and Macau. Cebu Pacific said that the Ps4b figure is provided against “the context of its 2020 profit outlook,” especially since it posted operating profit of Ps8.9b in H1 2019.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-02-05/unaligned/cebu-pacific-expects-up-to-79m-hit-from-coronavirus
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Cebu Pacific expects up to $79m hit from coronavirus
Cebu Pacific expects the coronavirus outbreak to impact its bottom line by up to Ps4b ($79m). The low-cost carrier estimates that it will see “a Ps3-4 billion swing on profit” should the outbreak remain unabated over the next six months. It makes this estimate based on 2003’s Severe Acute Respiratory Syndrome (SARS) outbreak, which curtailed demand for air travel for six months. The carrier has cancelled flights to China until 29 March, while reducing frequencies to Hong Kong and Macau. Meanwhile, compatriot Philippine Airlines and Philippines AirAsia have suspended flights to China, Hong Kong and Macau. Cebu Pacific said that the Ps4b figure is provided against “the context of its 2020 profit outlook,” especially since it posted operating profit of Ps8.9b in H1 2019.<br/>
