Cebu Pacific narrows loss in 2022 to P14B

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Cebu Pacific narrows loss in 2022 to P14B
Cebu Pacific A320neo. Photo from Cebu Pacific.
  • Cebu Pacific narrowed its net loss in 2022 to P14 billion from P24.9 billion in 2021
  • The low-cost airline recorded a three-digit revenue increase in 2022 brought by higher travel demand with easing of travel restrictions
  • Revenue last year grew 261% year-on-year led by a 459% jump in its passenger business
  • Cebu Pacific said its profitability remains challenged by the economic environment, as jet fuel prices spiked and the peso depreciated versus the dollar

Cebu Pacific narrowed its net loss in 2022 to P14 billion from P24.9 billion in 2021, fuelled by a three-digit revenue surge due to higher travel demand with the easing of travel restrictions, the airline said in a statement.

Revenue last year jumped 261% year-on-year to P56.8 billion led by a 459% increase in passenger business.

Cebu Pacific earlier said it flew over 14.8 million passengers for full year 2022, 335% higher year-on-year, for a seat load of 75%, which rose 14.7 percentage points.

While 2022 brought optimism on the demand front, Cebu Pacific said its profitability remained challenged by the economic environment, as jet fuel prices spiked and the peso depreciated versus the dollar.

Amid the headwinds, Cebu Pacific’s earnings before interest, taxes, depreciation, and amortization returned to positive territory last year at P664 million from 2021’s negative P8.8 billion.

Operating loss was reduced to P11.4 billion in 2022, about half of the previous year.

The low-cost airline’s recovery accelerated during the fourth quarter of 2022. Total revenues went up 192% year-on-year to P19.2 billion.

Net loss dropped from P2.9B in the fourth quarter of 2021 to P1.9 billion in the same quarter last year, and operating loss decreased significantly to P232 million from P4.3 billion.

Cebu Pacific said it is confident in its ability to overcome headwinds. Chief executive officer Mike Szucs said the airline “is ready to move forward with optimism and confidence as we transition from recovery to growth mode.”

For this year, Cebu Pacific expects to restore 100% of its pre-COVID network and capacity in March, aided by its seat sales, widest domestic network, and reinstatement of all its international destinations.

The airline will lease five aircraft in 2023 to address capacity and growing passenger demand. These are on top of the 10 new Airbus NEO aircraft that will be delivered in 2023 to expand the airline’s entire fleet.