Cebu Pacific execs take pay cut to save jobs as coronavirus hurts profits
MANILA, Philippines – Senior management of budget airline Cebu Pacific voluntarily took a pay cut to avoid layoffs, as the novel coronavirus continues to bite into its profits.
"It's the least that can be done given the challenging situation and it's the right thing to do," said Cebu Pacific spokesperson Charo Logarta Lagamon in a text message to Rappler.
Lagamon did not disclose just how drastic the pay cut was, but Gokongwei-led Esquire magazine reported that officials took a 10% cut.
Cebu Pacific expects losses to reach as much as P4 billion due to travel bans and fewer bookings.
It is now relying on volume to offset losses, as it had already offered lower rates to encourage travel. (READ: Airlines grim as trade group sees potential $113-billion hit from virus)
Cebu Pacific earned P7.1 billion in net income in the 1st half of 2019, an increase of 115.7% from the same period in 2018.
In 2018, it reported a 50.6% decline in its earnings due to a "challenging macro environment."
Rival Philippine Airlines has already let go of around 300 employees, as the coronavirus aggravated its losses.
In a bid to help local airlines, the country's aviation authorities have decided to defer their fees for takeoff, landing, and parking for a year. – Rappler.com