Cebu Pacific of ultra bilyonaryo Lance Gokongwei is apparently making a lot of money from the suffering of its revenge travel-driven passengers.
The airline’s financial statement reveals that revenues from rebookings, refunds, and cancellation fees have vaulted by a staggering 270 percent or P1.45 billion, reaching nearly P2 billion in the first quarter of this year.
These additional charges accounted for approximately 10 percent of Cebu Pacific’s P20.9 billion revenue in the first quarter.
Comparatively, before the pandemic, this income item represented only 7.6 percent, or P6.4 billion, of the airline’s P89 billion revenue in 2019.
A Twitizen, @whenRMMtrades, was astonished by the size of this revenue stream: “A whopping 10 percent of their revenue is from this line item? How do they earn big from this?! Asking for consumer education purposes.”
“The airlines fiasco in Philippines — seems to be driven by two things — availability of parts for repair and maintenance, and overbooking. Isn’t overbooking, then canceling and rebooking passengers to the next flight / other flights, which are potentially overbooked a form of Ponzi scheme?” asked @whenRMMtrades.
Congressman Rufus Rodriguez has earlier called for the suspension of Cebu Pacific’s franchise, accusing the airline of selling an excessive number of tickets without the necessary aircraft to accommodate passengers.
Cebu Pacific largely blamed a global parts scarcity which has led to reduced fleet capacity, resulting in a surge in flight cancellations.
Notably, Cebu Pacific admitted that it was informed as early as March this year about the lack of spare parts but it only decided to reduce its flights yesterday when it was dragged to the Senate probe on horror stories involving its passengers.
Aside from the surge in rebooking revenues, @whenRMMtrades also questioned why Cebu Pacific didn’t fix what the budget airline claimed to be as “glitches” in its websites – from multiple charges on vouchers and extra baggage charges that take months to get refunded.
Cebu Pacific promised to fix these problems by the end of next month even these issues have plagued customers since the first quarter of this year.
Hindi bumenta palusot ni Lance Gokongwei! Cebu Pacific’s woes stem from overselling tickets, not parts shortage
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Lance Gokongwei can’t say my bad: Cabinet official calls outs Cebu Pacific for shamelessly blaming everyone else and absolving itself from its passengers woes
Navigating turbulence: Cebu Pacific trims flights to restore operational reliability
Rebookings, refunds, chatbots can’t conceal Cebu Pacific’s abuses: Being a budget airline is no excuse for Gokongwei’s neglect of ordinary Filipino passengers