Cebu Pacific Reports 337% Increase in Q2 Revenue

(12 August 2022, 10:39 +07)  Cebu Pacific has reported a Q2 2022 increase in revenue of 337% to P13.97 billion up from P3.2 billion in the same quarter in 2021.

The growth in revenue was primarily driven by a strong recovery in the passenger and ancillary businesses which grew 644% and 572% year-on-year, respectively.

Cargo sustained growth with a 15% Q2 increase to P1.7 billion on last year, delivered on the back of higher cargo volumes.

Cebu Pacific A320 reg: RP-C4104. Picture by Steven Howard of TravelNewsAsia.com

Seat load factor of 77% was 21 pts higher than last year’s 56%, a result of network recovery driven by the domestic market where passengers flown increased 562% year-on-year, while flights grew 350% year-on-year.

Cebu Pacific’s international network has also started to recover as travel requirements of countries in Southeast Asia such as Singapore and Thailand gradually eased.

The airline also expanded its network, resuming 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, not surprisingly, 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.