Cebu Pacific expects up to USD 79 million impact from coronavirus

Low-cost carrier Cebu Pacific has announced it anticipates a USD 79 million impact to its financial status, if the coronavirus is not slowed or stopped in the next six months, the company said.

The company said this estimate is based on 2003´s Severe Acute Respiratory Syndrome (SARS) outbreak, which slowed demand for air travel for six months.

The carrier has cancelled flights to China until 29 March, while reducing frequencies to Hong Kong and Macau. Meanwhile, compatriot Philippine Airlines and Philippines AirAsia have suspended flights to China, Hong Kong and Macau.

Cebu Pacific stressed that the Ps4 billion figure is provided against “the context of its 2020 profit outlook,” especially since it posted operating profit of Ps8.9 billion in the first half of 2019.