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Gokongwei-led Cebu Pacific is bracing itself for a tougher-than-usual third quarter this year on the lingering impact of the surge in jet fuel prices brought on by the latest turmoil in the Middle East.
As such, it has decided to take the prudent route following an already challenging second quarter and cut as much expenses as possible.The budget airline aims to conserve cash while continuing to invest in long-term projects that will better prepare it for the inevitable upturn.
But in the meantime, bringing down expenses means taking the rare step of Cebu Pacific management and staff members being asked to consider going on either unpaid leave for anywhere from two weeks to 45 days or taking a temporary pay cut.
“We’ll do cash preservation, which starts at the top. So you’ll see executives of Cebu Pacific taking pay cuts” of as big as 50 percent that could last until November this year, said Cebu Pacific CEO Michael Szucs.
