Cebu Pacific net income doubled in 2019
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Cebu Pacific on Wednesday reported a 132.6-percent jump in net income for 2019, before the coronavirus pandemic grounded world travel and plunged airlines into financial turmoil.
The Philippines’ largest airline posted net income of P9.123 billion last year from nearly P4 billion in the previous year, according to a stock exchange filing. Passenger revenue grew 8.7 percent to P4.3 billion while cargo revenue rose 19.3 percent to P887.8 million.
Gokongwei-led Cebu Pacific, Philippine Airlines and AirAsia Philippines on Tuesday sought credit relief from Manila, saying their survival was at stake. Flight were suspended throughout the 1-month Luzon lockdown, scheduled to end on April 12.
“While it is difficult to predict when operating conditions will improve, the Group believes that it remains a going concern, given the measures undertaken, its liquidity position, its access to short and long term funding, and the strong relationships it has with major suppliers,” Cebu Pacific said.
Cebu Pacific earlier said its senior management took pay cuts to avoid layoffs.
Questions & Answers
Q.Did Cebu Pacific's increased revenue in 2019 come from passenger or cargo operations?
Did Cebu Pacific's increased revenue in 2019 come from passenger or cargo operations?
Both passenger and cargo operations saw revenue increases in 2019. Passenger revenue grew by 8.7 percent, while cargo revenue rose by 19.3 percent, contributing to the overall financial performance.
Q.What actions did Cebu Pacific take to manage its finances during the crisis?
What actions did Cebu Pacific take to manage its finances during the crisis?
Cebu Pacific's senior management took pay cuts to help avoid layoffs. The airline also sought credit relief from Manila alongside other major Philippine airlines, citing survival concerns.
Q.What is Cebu Pacific's outlook despite the current difficult operating conditions?
What is Cebu Pacific's outlook despite the current difficult operating conditions?
Despite the challenges, Cebu Pacific believes it remains a going concern. This confidence is based on measures undertaken, its liquidity, access to funding, and strong supplier relationships.
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