Cebu Pacific’s losses worsen in Q2

Cebu Pacific’s financial losses deepened in the second quarter of this year as the impact of the Covid-19 pandemic began to be felt more severely. The Philippine airline and its subsidiaries made an operating loss of Ps6.29b ($129m) in the three months ended 30 June, it reports. This compares with a profit of Ps4.96b in the corresponding period in 2019. An operating loss of Ps693m had been incurred in Q1 2020. The H1 operating loss of Ps6.98b compares with an operating profit of Ps8.81b in the same period of 2019. At the net level, a Q2 loss of Ps7.96b compares with a profit of Ps3.79b a year ago. The company made a H1 net loss of Ps9.14b after a profit of Ps7.14b in the six months ended 30 June 2019. First-half revenue was down 61% at Ps17.3b. Q2 revenues dwindled to Ps1.42b from Rs23.5b in the same period of 2019. “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 due to the imposition of travel restrictions,” says the airline. “With the rapid escalation of the situation surrounding Covid-19, the Philippine government implemented a community quarantine which then prompted the group to suspend all its scheduled flights beginning 19 March 2020.”<br/>