Revenue collapse widens Cebu Pacific Q3 loss

Cebu Pacific continued its loss-making streak for Q3 this year, as it widened its operating losses on the back of a steep revenue decline. For the quarter ended 30 September, the Philippine low-cost carrier and its subsidiaries reported an operating loss of Ps6.7b ($139m), reversing the Ps873m quarterly operating profit it made last year. It was also a marginally higher loss compared to the Ps6.29b operating loss it reported in the previous quarter. Revenue for the period plummeted 89% to Ps2b, outpacing a 52% year-on-year decline in expenses. The revenue decline was led by a dramatic 97% drop in passenger revenue year on year. Cebu Pacific reported a net loss of Ps5.5b, widening the previous year’s Ps376m net loss. On a nine-month basis, the carrier reported an operating loss of Ps13.7b, reversing the Ps9.7b operating profit it reported the same period last year. As with previous financial results, Cebu Pacific warned that the pandemic would adversely affect its liquidity. It adds: “However, the group is confident on its ability to raise cash for liquidity needs even if there were unprecedented losses incurred as a result of an expected slow recovery from this crisis. The group remains in a strong balance sheet and equity position at the end of the period.” <br/>