MANILA - Cebu Pacific Air said Wednesday it incurred a net loss of over 200 percent in the first half of the year due to the adverse impact of COVID-19.
Its January to June net loss reached P9.141 billion, down 227.9 percent from P7.145 billion in the same period last year, Cebu Pacific said in a disclosure to the stock exchange.
Revenues for the period also declined 61.2 percent due to cancellation of flights to China, Hong Kong, Macau and South Korea in compliance with various travel restrictions to contain the disease, it said.
The Philippine government started suspending flights in March until restrictions gradually eased last June 1. Domestic flights to and from Metro Manila were again suspended from Aug. 4 to 18 after it was reverted to modified enhanced community quarantine.
Cebu Pacific said there was a 60.1 percent decline in passenger traffic to 4.5 million from 11.2 million due to the lesser number of flights, resulting in lower passenger revenue.
"As of June 30, 2020, the Group anticipates that the COVID-19 global pandemic would have a material impact on its liquidity. 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 statement said.
"The Group believes that it remains a resilient airline despite the adverse impact of the COVID-19 outbreak," it said.
The carrier earlier said it would lay off some 800 employees COVID-19 pandemic continues to "negatively impact" the airline industry.
Prior to the pandemic, Cebu Pacific operates 78 domestic routes and 25 international routes with 2,717 scheduled weekly flights.