Cebu Pacific, the budget carrier brand of the Gokongwei Group’, saw net income in the first quarter drop 78 percent to P466 million, dragged down by higher fleet and financing costs related to its fleet and route expansion. The budget carrier, which is operated by listed Cebu Air Inc., saw first quarter revenue rose 20 percent to hit a record P30.4 billion on the back of strong demand for air travel and a surge in passenger traffic.
Passenger revenue grew by 19 percent to P21 billion, while ancillary revenue rose by 22 percent to more than P7 billion. These gains reflect Cebu Pacific’s expanded operations and continued recovery in the aviation sector.
By the end of the first quarter, Cebu Pacific’s fleet had grown to 99 aircraft, serving 63 destinations and 127 routes, with over 3,200 weekly flights. The airline’s expanded network and capacity also contributed to growth in its cargo segment, with revenue rising 35 percent year-on-year to ₱1.7 billion. Cebu Pacific transported 51.6 million kilograms of cargo during the quarter.
In the past 12 months, Cebu Pacific received 15 aircraft and 13 spare engines to support its capacity growth, despite facing global supply chain challenges. This expansion, however, resulted in higher fleet and financing costs during the first quarter.
Despite the increased operating costs, Cebu Pacific maintained a healthy earning before interest, taxes, depreciation and amortization (EBITDA) of P6.7 billion, slightly higher than the previous year, with an EBITDA margin of 22 percent. Operating income stood at P1.96 billion.
“We remain optimistic about our financial outlook. The underlying demand for affordable air travel continues to be strong, and we’ve made strategic investments to ensure resilient operations,” said Mark Cezar, Cebu Pacific’s chief financial officer. “Leveraging these assets, we are well-positioned for sustainable growth and improving profitability.”
