Cebu Pacific reported a 76% surge in net income of P5.025 billion in the first nine months of 2023
The latest performance is a turnaround from the P12.046 billion net loss in the same period last year
Passenger revenues rose by 105.2% with a 48.8% increase in passenger numbers
Cargo revenues fell by 47.1% due to lower cargo amounts and service yield
Cebu Pacific reported a 76% surge in net income of P5.025 billion in the first nine months of 2023, a reversal from the P12.046 billion net loss sustained in the same period last year.
Group revenues for the first nine months of the year grew 76.2% to P66.896 billion from P37.533 billion last year. Cebu Air, Inc., the parent company, attributed this growth to a significant increase in passenger volume, especially for international travel.
Cebu Pacific expanded its international network, with a whopping 236.2% increase in international flights during the first nine months of the year.
Revenues from passengers went up 105.2% to P46.132 billion from P22.481 billion, mainly attributable to the 48.8% growth in passenger volume from 10.4 million to 15.5 million. This was fueled by a 10-percentage-point increase in seat load factor, going from 74.4% to 84.4%.
The number of international passengers also shot up by 444% to 3.5 million from 0.6 million in the same period last year. Higher travel demand, especially in the third quarter due to a shift in the school calendar, led to a 37.9% increase in average fares as more passengers opted for longer international routes.
Cargo revenues, on the other hand, decreased 47.1% to P2.970 billion from P5.615 billion, primarily driven by lower cargo kilograms flown and yield from cargo services.
Revenue from ancillary services rose 88.5% to P17.794 billion from P9.437 billion largely due to higher passenger volume and flight activity during the period, particularly for international routes.
Operating expenses for the first nine months of the year increased by 24.7% to P60.746 billion from P48.730 billion last year. The weakening of the Philippine peso against the US dollar contributed to this rise in operating expenses.
The airline anticipates receiving a total of 19 aircraft deliveries for 2023, with six expected before the year ends.