Despite 'Tough' Few Months, Cebu Pacific Posts P3.75 Billion Net Income in First Half of 2023
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Cebu Air Inc., the operator of low-cost airline Cebu Pacific reported earning a net income of P3.75 billion for the first six months of 2023. That’s a complete 180-degree turn from the same period last, when it posted a P9.5 billion net loss.
Revenues also surged over 110 percent to P43.55 billion versus P20.68 billion in the first half of 2022.
The Gokongwei-controlled airline said passenger revenues increased by 158.2 percent to P30.13 billion from P11.66 billion last year, with passenger up 63.3 percent to 10.3 million from 6.3 million last year.
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“The overall increase in revenues was primarily driven by significant increase in passenger volume and flight activities due to the increased demand for travel,” the company reported in a disclosure to the Philippine Stock Exchange.
The number of flights rose 47.5 percent, while the average seat load factor, which was at 84.8 percent as of end-June, was also positive. Ancillary revenues also improved 109.9 percent to P11.43 billion from P5.98 billion last year.
On the negative side, cargo revenues decreased by 44 percent to P2 billion.
“The past few months have been one of the toughest for CEB, but we remain steadfast in our commitment to provide safe, reliable, and affordable flights to our passengers and support economic growth in the Philippines and across the region,” Cebu Pacific President Alexander Lao said in a separate statement.
Cebu Pacific was hit with numerous passenger complaints over the last six months, prompting a Senate inquiry. But the airline continued its stunning recovery as travel once again picked up following years of lockdowns caused by the pandemic.
As of June 30, Cebu Pacific operates a fleet of 80 aircraft which comprises of 21 Airbus A320 CEOs, seven Airbus A321 CEOs, 14 Airbus A320 NEOs, 10 Airbus A321 NEOs, four Airbus A330 CEOs, five Airbus A330 NEOs, five ATR 72-500s, and 14 ATR 72-600 aircraft.
The airline flies to 78 domestic and 29 international destinations.
