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Cebu Pacific reported a first-quarter 2023 net profit of P1.1 billion, bouncing from a P7.6 billion net loss in the same period last year, driven by its strong passenger and ancillary revenues
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This is Cebu Pacific’s first profitable quarter since the pandemic, as its revenues grew 211% year-on-year
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Cargo revenues decreased 38.7%, primarily due to lower volumes and lower yield from cargo services
Cebu Pacific reported its first profitable quarter since the pandemic, generating a net profit of P1.1 billion in the first quarter, bouncing from a P7.6-billion net loss year-on-year, driven by strong passenger and ancillary revenues.
Total revenues amounted to P20.9 billion, 211% higher than the P6.709 billion in the first quarter of 2022, the low-cost carrier said in a statement.
In 2022, Cebu Pacific narrowed its net loss to P14 billion from P24.9 billion in 2021.
The steep growth in the first quarter was largely driven by recovery of the passenger business, which generated P14.3 billion, 352% higher than the P3.161 billion earned in the first quarter of last year. This was followed by ancillary business, which generated P5.46 billion, up 221% from P1.701 billion last year.
Cebu Pacific flew over 4.8 million passengers in the first quarter of 2023, 135% higher year-on-year. This drove seat load factor to jump to 83%, up 13 percentage points year-on-year.
The airline flew 32,000 flights in the first quarter, up 94% year-on-year.
Cargo revenues, meanwhile, decreased 38.7% to P1.131 billion from P1.847 billion in the first quarter of last year, primarily driven by lower cargo volumes flown and lower yield from cargo services.
Operating expenses, on the other hand, rose 63% as increased utilization of aircraft and operating systems, coupled with higher productivity of crew and personnel, also contributed to the improvement of the airline’s profit margin.
Operating income turned positive to P1.24 billion in the first quarter from an operating loss of P5.34 billion in the same period last year.
Cebu Pacific said it remains to have the largest network in the Philippines, flying to 34 local and 24 international destinations by end of the first quarter. With 60 routes and over 2,100 weekly flights, the airline’s domestic network was already operating above pre-pandemic levels during the first quarter.
International network, on the other hand, continued to gain traction following the easing of travel requirements of north Asian countries. Cebu Pacific also resumed flights to Melbourne and Macau and restarted flights to Hong Kong from Cebu during the quarter.
Cebu Pacific expects that in the second quarter, it will exceed its pre-pandemic capacity on a systemwide basis, supported by an optimistic outlook as the tourism industry continues to recover, plus the strengthening of its Clark and Cebu hubs.
The carrier also expects to reach 2019 international capacity levels during second quarter, while domestic operations will continue to grow with additional flight frequencies to various destinations, coupled with flight resumption of routes such as Manila – Laoag, Iloilo – Puerto Princesa, and Iloilo – Cagayan.
