Cebu Pacific slips into first-quarter loss
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Cebu Pacific posted an operating loss of Ps693 million ($13.7 million) in the first quarter of 2020, reversing the Ps3.85 billion operating profit made in the same period last year.
Total revenue for the quarter ended 31 March fell 24.9% to Ps15.9 billion, as revenue from passenger, cargo, and ancillary segments fell across the board.
The low-cost carrier’s expenses declined 4.2% to Ps16.6 billion, due to a sharp fall in costs associated with reduced flying operations, as well as reservation and sales. On the other hand, costs from depreciation and amortization, and aircraft maintenance costs were all higher.
Cebu Pacific thus slipped into a net loss of Ps1.18 billion, down from a net profit of Ps4 billion last year. Factors contributing to the net loss include losses from hedging and foreign exchange.
Cash and cash equivalent stood at Ps17.5 billion as of 31 March, down from the Ps22.5 billion a year before.
During the quarter, Cebu Pacific grew its fleet from 75 to 76 aircraft, having added one Airbus A320neo.
Questions & Answers
Q.What was the total revenue for Cebu Pacific in the first quarter?
What was the total revenue for Cebu Pacific in the first quarter?
Total revenue for the quarter ended 31 March was Ps15.9 billion. This figure represents a 24.9% decline compared to the same period in the previous year, with falls in passenger, cargo, and ancillary segments.
Q.How much did Cebu Pacific's expenses decrease in the first quarter?
How much did Cebu Pacific's expenses decrease in the first quarter?
Cebu Pacific's expenses decreased by 4.2% to Ps16.6 billion. This reduction was primarily due to a sharp fall in costs associated with reduced flying operations, alongside lower reservation and sales expenses.
Q.What factors contributed to Cebu Pacific's net loss during the first quarter?
What factors contributed to Cebu Pacific's net loss during the first quarter?
The net loss was influenced by several factors, including losses from hedging and foreign exchange. These, along with the decline in total revenue and higher depreciation, amortisation, and aircraft maintenance costs, contributed to the final net loss.
Q.Did Cebu Pacific expand its fleet during the first quarter?
Did Cebu Pacific expand its fleet during the first quarter?
Yes, Cebu Pacific did expand its fleet during the quarter. The company added one Airbus A320neo, increasing its total number of aircraft from 75 to 76 by 31 March.
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