CebuPac net income soars 108% to P2.2B in Q1

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CebuPac net income soars 108% to P2.2B in Q1
Cebu Pacific A320neo. Photo from Cebu Pacific.
  • Cebu Pacific reported a net income of P2.2 billion in the first quarter of 2024
  • This is 108% higher than the P1.078 billion posted in the same period last year
  • Revenue jumped 21% to P25.3 billion, primarily driven by the increase in passenger volume, especially for international destinations
  • The airline carried 35 million kilos of cargo in the first quarter of 2024, 16% higher year-on-year and generated almost P1.3 billion revenue

Cebu Pacific’s net income soared 108% to P2.2 billion in the first quarter of 2024 from P1.078 billion year-on-year.

Revenue generated from January to March 2024 amounted to P25.3 billion, up 21% from P20.877 billion in the same period last year, primarily driven by the increase in passenger volume, especially for international destinations.

Revenue from the passenger business reached almost P18 billion, a 25% jump from P14.285 billion in the first quarter of last year. From January to March, Cebu Pacific flew over 5.5 million passengers, marking a 14% increase from the same period last year, and a 3% increase from the preceding quarter.

Growth was supported by returning travelers over the Christmas holidays and Easter break, as well as other Philippine festivals and events, the low-cost carrier said in a statement. This was coupled by higher frequencies on popular destinations, and the expansion of international footprint through the launch of the Manila-Danang, Vietnam route.

Ancillary business generated over P6.2 billion in revenue, 14% higher year-on-year, likewise driven by the higher passenger count.

Cargo business

The cargo business also showed improvement from last year as Cebu Pacific carried 35 million kilos of cargo, 16% higher year-on-year. This generated almost P1.3 billion revenue in the first quarter, 11% higher year-on-year.

Operating expenses totaled almost P23 billion, up 15% year-on-year, driven by the increase in flying operations and fleet-related expenses. Compared to the same period last year, the airline flew 14% more flights. Further, it had 17 more aircraft in the fleet, to improve its operational resilience and reliability while maintaining growth.

“As Cebu Pacific steps into 2024, the airline is committed to sustaining the positive momentum it has started in the past year,” Cebu Pacific chief financial officer Mark Cezar said.

During the company’s virtual annual stockholders’ meeting on May 9, Cebu Pacific chief executive officer Michael Szucs said the airline is expecting an additional 18 aircraft deliveries.

Szucs said this will increase Cebu Pacific’s capacity year-on-year by 12% to 15%, allowing the airline to provide affordable flights for all its passengers.

For the first quarter of 2024, Cebu Pacific is offering 14% more seats compared to last year and this is expected to continue in the second quarter with double-digit capacity growth as it upgrades several international routes including Manila to Bangkok, Hong Kong, and Incheon.

The airline’s capital expenditure for 2024 is estimated at P48.7 billion, which will be financed through a mix of long-term debt and leases.

Cezar said they are now in the final stages of coordination with aircraft manufacturers Airbus and Boeing regarding its request for proposal for the order of 100-150 narrow-body jets amounting to over $12 billion. Cezar said they expect to announce the result by the second quarter.

READ: Cebu Pacific eyes purchase of up to 150 aircraft worth $12B

Cebu Pacific earlier announced it aims to buy narrow-body aircraft from either Boeing or Airbus, making this potentially the largest aircraft purchase in the Philippines.

The order is expected to result in approximately a 9% compound annual growth rate on seats beginning 2027, which is the year Cebu Pacific anticipates initial deliveries to commence. Cezar noted though that delivery schedules are still under discussion.