Cebu Pacific Reports Q1 Net Profit of P1.1B; Returns to Profitability

Cebu Air Inc (CEB) reported a net profit of PHP1.1B in the first quarter of 2023, bouncing back from a net loss of PHP7.6B in the same period last year. This is the first profitable quarter for the airline since the pandemic began, and it was mainly driven by the strong performance of its passenger and ancillary revenues.

CEB’s total revenues in the first quarter reached PHP20.9B, a 211% increase compared to the same period last year. This growth was largely due to the recovery of its passenger business, which generated PHP14.3B, up 352% year-on-year. The ancillary business also performed well, with PHP5.46B in revenues, up 221% year-on-year.

In the first quarter, the Filipino airline flew over 4.8 million passengers, a 135% increase year-on-year, resulting in a seat load factor of 83%, up 13% points year-on-year. CEB operated 32,000 flights in the first quarter, up 94% year-on-year. Operating expenses increased only 63%, as increased utilization of aircraft and operating systems, coupled with higher productivity of crew and personnel, contributed to the improvement of the airline’s profit margin.

CEB has the largest network in the Philippines, flying to 34 local and 24 international destinations by the end of the first quarter. Its domestic network was already operating above pre-pandemic levels, with 60 routes and over 2,100 weekly flights during the first quarter. The international network continued to gain traction following the easing of travel requirements in North Asian countries. CEB also resumed flights to Melbourne and Macau and restarted flights to Hong Kong from Cebu during the quarter.

The airline expects to exceed its pre-pandemic capacity on a systemwide basis in the second quarter, supported by an optimistic outlook as the tourism industry continues to recover, and the strengthening of its Clark and Cebu hubs. The airline expects to reach 2019 international capacity levels during the second quarter, while domestic operations will continue to grow with additional flight frequencies to various destinations, coupled with flight resumption of routes such as Manila – Laoag, Iloilo – Puerto Princesa, and Iloilo – Cagayan.

CEB’s strong performance in the first quarter of 2023 is a positive sign for the airline industry in the Philippines as it indicates a recovery from the impact of the pandemic. With its extensive network and continued expansion, CEB is well-positioned to take advantage of the expected growth in the tourism industry in the coming years.

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