BUDGET carrier Cebu Pacific, operated by Cebu Air, Inc., said it has sufficient cash to support its operations for the next 18 months.
“As of March 30, 2022, the group has undertaken various financing activities intended to ensure availability of sufficient financial resources to enable the group to continue as a going concern,” Cebu Air said in its annual report.
“Its cash and cash equivalent balance of P18.14 billion as of Dec. 31, 2021 is sufficient to support the operations of the group for the next 18 months,” the airline group noted.
It expects to maintain cash and cash equivalents from internally generated cash flows, refund of pre-delivery payments on new aircraft to be subjected to sale and leaseback, and a P16-billion term loan facility with various banks for the next 12 months.
“Accordingly, management has assessed that the group will have sufficient financial resources to enable the group to continue as a going concern for at least the next twelve months from Dec. 31, 2021.”
The company incurred a net loss of P24.9 billion and 22.2 billion for 2021 and 2020, respectively.
The pandemic has “disrupted the business of the group in 2021 and 2020, resulting in significant deterioration of earnings and cashflows, and may continue to significantly disrupt the business activities of the group,” Cebu Air noted.
The airline company also said it will have 53 aircraft deliveries from this year to 2027.
“The additional aircraft will support the Airline group’s plans to increase frequency on current routes and to add new city pairs and destinations,” it added.
At the same time, the company expects to increase the number of its employees this year to 3,678 from 3,046 in 2021.
It aims to restore more than 100% of its pre-pandemic domestic capacity this month.
Cebu Air shares closed 0.63% lower at P47.50 apiece on Tuesday. — Arjay L. Balinbin