Passenger refunds due to the Covid-19 pandemic are a factor in Cebu Pacific's revenue loss last year.
The processing of refunds now takes up to seven months due to the high volume of requests after domestic and foreign travel was disrupted since March last year
ALREADY reeling because of numerous travel suspensions and cancelations, budget carrier Cebu Pacific still has to shell out P1.43 billion in passenger refunds last year due to the Covid-19 pandemic.
In the company’s annual report, Cebu Pacific said it saw a 1,938.7-percent increase in refunds payable, which was a huge jump from 2019’s P70.17 million.
The processing of refunds now takes up to seven months due to the high volume of requests after domestic and foreign travel was disrupted since March last year.
In the same report, the airline stated a net loss of P22.2 billion due to the pandemic’s effects on its operations.
Their revenue dropped 73% to P 22.6 billion, while their cargo sector contributed P5.4 billion of 24 percent of the total revenue for the year.
The number of passengers it carried in 2020 was 5 million, while the number of flights dropped significantly by 71 percent to 41,804 flights.
Ultimately, the company expects a slow recovery to the aviation business due to the Covid-19 pandemic that continues to wreak havoc in the country.
Despite the losses it incurred, the group is hopeful that it would be able to bounce back one way or another.
The company heads are currently planning and executing numerous measures to try and minimize the effects of the pandemic on its operations.
Such measures include negotiations with key suppliers on their capital expenditure commitments and related cash flows, and other suppliers and stakeholders that impact the company’s cash flows. (MO)
Tags: #CebuPacific, #refunds, #Covid19