Cebu Pacific Q1 loss widens to Ps6.8b

Philippine low-cost carrier Cebu Pacific Air saw its Q1 operating loss balloon to Ps6.8b ($124m) from Ps692m a year earlier. Revenue for the three months ended 31 March fell 83% Ps2.7b, according to the airline’s unaudited financial statement for the period. The airline attributed the sharp reversal to the coronavirus pandemic. “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 in early 2020 due to the imposition of travel restrictions,” says the carrier. This rapid spread of Covid-19, first discovered in China, saw the Philippine government impose a “community quarantine” that forced the airline to cancel all flights from 19 March 2020. Services were “virtually nil” until April 2020, when the airline started to operate domestic and international cargo services. In specific business segments, passenger revenue fell to just Ps887m from Ps11.4b a year earlier, while cargo revenue grew 32% to Ps1.3b.<br/>