CEBU AIR, Inc., the listed budget carrier operator Cebu Pacific said on Monday, as part of its fund raising scheme, it may begin its chosen $250 million convertible stock offering on February 26.

The airline operator said in its statement to the stock exchange that it intends to strengthen its budget by offering cash to fund its financial obligations, which requires a $100 million advance reimbursement allocation to JG Summit Philippines Ltd.; a budget of $71.3 million to compensate airplane service lease due this year and a budget of $72.3 million to repay principal debt.

Net revenues would still cover the $6.4 million general-company allocation for fare refunds “if operating cash inflows are ineffective” as a consequence of the pandemic, Cebu Air said.

The time of offer is up to 4 March.

The business noted that its plans may also alter because they are based on evolving business dynamics or new cost or viability details.

“Cost forecasts of the organization will often change since real costs can vary from the projections,” he said.

The low-cost carrier revealed its new plan to “increase passenger confidence” also on Monday.

Cebu Pacific said the airline provides an upgrade to the P270 insurance policy “COVID Protect.”

The budget carrier claimed in an e-mailed comment that “the update, which would cover hospitalization and care linked to COVIDs, has been in good timing since the carrier wants to provide more passenger choices.

This add-on would include up to 1 million compensation for hospitalization and medical costs for Cebu Pacific travelers who checked the affirmative COVID-19 insurance.

The policy period begins on the day of departure and expires two hours at the point of delivery and continues for a full 30 consecutive days.


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