Cebu Air Inc. (PSE: CEB), the Philippines’ leading carrier, saw its revenue for the second quarter increase by 337% to P13.97 billion from P3.2 billion in the same period in 2021, as it operated more flights and flew more passengers after travel restrictions eased.
Revenue growth was driven primarily by strong recovery in the passenger and ancillary business which grew 644% and 572% year-on-year, respectively. Similarly, the cargo business sustained its growth with a 15% increase to P1.7 billion vs last year on the back of higher cargo volumes.
Seat load factor of 77% was 21 pts higher than last year’s 56%. The improvement in load factor resulted from the network recovery driven by the domestic market where passengers flown increased 562% year-on-year while flights grew 350% year-on-year.
CEB’s international network has also started to recover as travel requirements of other Southeast Asian countries such as Singapore and Thailand eased. CEB also expanded its network as it resumed flights to Hanoi, Bali, and Taiwan in the second quarter.
Total operating expenses totaled P16.8 billion, 86% higher year on year despite 323% more flights. Fuel was the biggest contributor to expenses due to the steep hike in jet fuel prices. Nevertheless, net loss narrowed to P1.9 billion from P6.5 billion last year. Positive EBITDA of P453M was also recorded, a 121% jump from negative P2.1B last year.
“Amidst the risks posed by expensive jet fuel, peso depreciation and interest rate hikes, CEB remains cautiously optimistic that we can turn the tide soon as domestic demand looks robust and international borders continue to reopen. We continue to stay true to our commitment of providing accessible air transport service for everyone.” said Cebu Pacific Chief Financial Officer, Mark Cezar.
