Cebu Pacific posted a net loss of P5.9 billion in the first half of the year, a sharp reversal from the P8.9-billion net profit recorded in the same period last year, due to surging fuel prices and foreign exchange losses.
For the second quarter alone, the country’s largest budget carrier booked a net loss of P5.5 billion, compared to the P8.5-billion net profit a year prior, after fuel expenses more than doubled year on year. It also registered a P2.7-billion operating loss for the April-to-June period.
Chief executive officer Michael Szucs described the second quarter as one of the most difficult operating periods the airline has faced since the pandemic. “The second quarter was one of the most challenging operating environments we have faced post-pandemic, driven by an unprecedented spike in fuel prices,” Szucs said.
Total revenues for the first half rose 8 percent to P68.6 billion, backed by steady demand for air travel. Passenger revenue went up 7 percent to P47.2 billion, while ancillary and cargo revenues grew 11 percent and 13 percent respectively. The airline carried nearly 14.5 million passengers in the six-month window, 4 percent higher year on year, with domestic traffic rising 5 percent and international traffic up 2 percent.
Second-quarter revenues climbed 7 percent to P35.2 billion, supported by firm travel demand and calibrated fare adjustments. Passenger revenue hit P24.7 billion, while ancillary revenue rose 4 percent and cargo revenue increased 18 percent.
Despite rising costs, Szucs noted demand for affordable flights stayed strong, helping the airline expand its market lead. Internal estimates show Cebu Pacific’s domestic market share rose to 60 percent in the second quarter from 55 percent a year earlier. The airline also recorded an 84.2-percent on-time performance, placing it among the most punctual carriers in the Asia-Pacific region.
Looking ahead, Szucs said the airline stays optimistic as market conditions settle. “Despite these external pressures, demand for affordable air travel remained resilient, revenue continued to grow, and we further strengthened our market leadership. As industry capacity becomes more rational and market conditions improve, we remain confident in Cebu Pacific’s long-term growth opportunity and our ability to deliver sustainable value for our shareholders,” he added.
