Cebu Pacific returned to profit in the first half (H1) of 2023 booking close to P4 billion with strong recovery in passenger demand. Cebu Pacific reported a net income of P3.75 billion in the first half, a reversal from the net loss of P9.5 billion a year ago.
In the H1, 2023, Cebu Pacific doubled its earnings to P43.55 billion from P20.68 billion to offset the 38% surge in expenses to P39.79 billion. The airline’s passenger revenue increased by nearly three times to P30.13 billion with almost 10.3 million passengers in the first semester. Cebu Pacific rose its flight volume by 48%, raising its load factor to 84.8%.
“The overall increase in our revenues was primarily driven by significant increases in passenger volume and flight activities due to the increased demand for travel. The expenses also rose given the additional spending required in serving the resurgent demand from passengers,” the airline said in a statement.
The airline also reported a 58% surge in its flying operations to P16.77 billion caused by increased fuel consumption across its flight network.
Looking ahead, Cebu Air is anticipating a drop in the revenue in the third quarter as a result of decreased demand for air travel between July and September.
Cebu Pacific plans to invest P42 billion for capital expenditures. The airline aims to boost its fleet by receiving a total of 15 aircraft from Airbus, although this may change in the coming months depending on the need for additional jets.
With quarantine restrictions lifted, Cebu Pacific hopes to fly more than 22.48 million passengers this year to overcome its pre-pandemic record.
At present, the airline flies to 35 domestic destinations and 23 international routes across Asia, Australia, and the Middle East.