Cebu Pacific swings to massive operating loss in 2020

Philippine low-cost carrier Cebu Pacific Air swung to an operating loss of Ps20.8b ($428m) for 2020 amid the impact of the coronavirus pandemic. Revenues fell 73% year on year to Ps22.6b, says the carrier in a statement. It also swung to a net loss of P22.2b for 2020, and cited the “heavy impact of the unprecedented Covid-19 crisis.” During the year, the airline flew just 5m passengers, a 78% decline from 2019, while total flights were 41,804, a 71% decrease. “When the country was placed in Enhanced Community Quarantine (ECQ) in March 19, 2020, [Cebu Pacific’s] commercial operations were grounded. Commercial operations resumed on June 3, albeit gradually with most of the Philippines still in General Community Quarantine (GCQ),” it says. “This resulted in various requirements and processes from local government units, which continue to be a challenge not only for Cebu Pacific and other airlines, but for the public as well.” In response to the crisis, the carrier reduced operating expenses by 40% during the year to Ps43.4b, with fuel costs showing a big decline owing to fewer flights and lower fuel costs. Cost savings initiatives included reducing its network, fleet, and manpower, in addition to booting efficiency.<br/>