CEB posts P25.3 billion revenue for Q1

Local carrier Cebu Pacific (CEB) posted a P25.3 billion revenue for the first quarter of 2024, a 21 percent increase from the previous year, as revenge travel continues to stride in local and international travel activities.

The Gokongwei-led carrier reported that the passenger business grew strongly, generating almost P18 billion in revenue, which was 25 percent higher year-on-year.

From January to March, CEB flew over 5.5 million passengers, marking a 14 percent increase from the same period last year, and a three percent increase from the preceding quarter.

Growth was supported by returning travelers over the Christmas holidays and Easter break and other Philippine festivals and events. This was coupled with higher frequencies on popular destinations, and the expansion of the international footprint through the launch of Manila-Danang route.

“As Cebu Pacific steps into 2024, the airline is committed to sustaining the positive momentum it has started in the past year. Given its widest network in the Philippines, with over 35 domestic and 24 international destinations, we will continue our mission to provide safe, reliable, and affordable flights to every Juan,” said Cebu Pacific Chief Financial Officer Mark Cezar.

Ancillary business generated over P6.2 billion in revenue, 14 percent higher year-onyear, driven by higher passenger count.

The cargo business also showed improvement from last year as CEB carried 35 million kilos of cargo, 16 percent higher year-on-year. This generated almost P1.3 billion in revenue, 11percent higher than the same period last year.

Operating expenses totaled almost P23 billion, up 15percent year-on-year, driven by the increase in flying operations and fleetrelated expenses.

Compared to the same period last year, CEB flew 14percent more flights. Further, it had 17 more aircraft in the fleet, to improve its operational resilience and reliability while maintaining growth.

CEB recorded an operating income of P2.6 billion for the first quarter, a 114 percent growth year-on-year. Likewise, net income grew 108 percent over the same period last year, reaching over P2.2 billion.

According to the International Air Transport Association (IATA), the Asia Pacific aviation sector, including the Philippines, had a robust beginning to the year with sustained momentum in air travel demand.

Earlier, IATA reported that passenger traffic in the region saw significant growth in the first two months of the year, with a 45.4 percent increase in January and a 53.2 percent increase in February.

IATA forecasted that airlines are expected to see higher demand for air travel in 2024, with 4.7 billion people forecasted to travel.

IATA believes that this will be a historic high and about four percent more than the 4.5 billion people who flew in 2019 before the COVID-19 pandemic wreaked havoc on air travel.

IATA is a trade association representing 320 airlines that collectivity make up 83 percent of global air traffic.