On Tuesday, a net losing of P22,2 billion was declared by the CEBU AIR Inc., listed operator of budget carrier Cebu Pacific, mainly because of the ‘strong consequences’ on operations of the global health crisis.

The corporation informed the local stock exchange that overall sales of Cebu Air decreased by 73 percent for 2020 to P22,6 billion.

Their freight sector accounted for P5,4 billion or 24% of overall income.

Last year, it transported 78 percent to five million travelers.

At 41.804, the flight number was 71% lower.

Cebu Air reported that it had ended the year with an operating loss of P20.77 billion and a negative EBITDAR of P932 million (earnings before debt, tax, depreciation and repatriation or loan costs).

At the end of 2020, the Business had gross assets of P128.46 billion, with a net debt-to-equity ratio of 3.17x.

Cebu Air’s favorite convertible securities “were released on the Philippine Stock Exchange successfully by 29 March, which provided fresh equity for P12,5 billion,” he states.

‘In addition, the firm signed a 10-year P16 milliard loan facility with a trade union of domestic banks on 5 March last, including the Phillippine Development Bank, Philippine Land Bank, Asia United Bank Corp., Philippine Islands Bank, Philippine Bank and UnionBank,’ he added.

Recalling that, for the year ended Dec. 31, 2019, Cebu Air registered a P10,28billion profits before tax of P6,80billion, above that of P3,48billion before tax of 31 Dec. 2018.

Cebu Air also revealed Tuesday that its Executive Board endorsed its long-term compensation package for the company’s employees.

Cebu Air will assign to “qualified workers” up to a cumulative 2% of its issued and unpaid shares.

Cebu Air said the strategy was aimed at creating equity interest in the organization and fostering the recognition of “popular objectives” with shared interests by encouraging a “ownership cultural culture” which involves employees in “growing interest in factors which drive business performance for the long term.”

The initiative should also maximize the internal retention of workers and raise the full payroll of employees “with an assessment of the company’s stock’s equity, which allows qualifying employees to accumulate personal capital.”

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