Analysis show Cebu Pacific is in best position to survive Covid-19 crisis

 In a recent airline data analysis from OAG and ISHKA showing which are airlines are in the best position to survive the Covid-19 pandemic, Cebu Pacific joined 6 other airlines as those with low financial risk profile despite having low or no support from the Philippine government.

In a report from Simple Flying, Cebu Pacific took a revenue hit in 2020, however, it has maintained a strong balance sheet and had a net debt to equity of 1.90 as of June 30. Cebu Pacific has measures in place to mitigate the worst effects of the travel downturn. This includes reducing capital expenditure and cash flows. Cebu Pacific’s stellar performance stands in marked contrast to most other carriers in its neighborhood.

Other airlines included in the low financial risk profile are Air Canada, IndiGo, WizzAir, Pegasus and Ryan Air.

Source: Simple Flying

Cebu Pacific earnings in 2019

Cebu Pacific made a net income of PhP 9.123 billion in 2019 which is a 132.6% increase from PhP 3.923 net income in 2018. Revenues also amounted to PhP 84.807 in 2019 compared to the previous year at PhP 74.144 billion. Revenues from passengers grew 13.7% to P61.682 billion last year from P54.260 billion in 2018. This was mainly attributable to the 10.8% growth in passenger volume to 22.5 million from 20.3 million last year as the group increased capacity. The increase in average fares by 2.6% also contributed to the increase in revenues.

Cargo revenues likewise rose 4.6% to P5.745 billion from P5.491 billion in 2018 following the increase in both yield and volume of cargo transported in 2019.

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