CEBU, Philippines — Gokongwei-led Cebu Air Inc. (CEB) reported a total revenue of P74.5 billion for the nine months ending September 2024, marking an 11 percent increase from 2023.
According to the company’s statement, this revenue growth was largely driven by a 13 percent rise in passenger volume, totaling 17.5 million, and resulting in an average seat load factor of 84.9 percent.
However, CEB’s operating income decreased by 8 percent to P5.7 billion, while its net income dropped by 33 percent to P3.4 billion, as higher expenses were incurred due to fleet expansion.
To support its growing operations, CEB ended September with 91 aircraft, adding 10 more aircraft compared to the previous year, along with 10 additional spare engines to enhance operational reliability.
In the third quarter of 2024, CEB’s revenue reached P23.1 billion, a slight one percent decrease year on year due to a shift in seasonal demand prompted by the earlier start of the K-12 academic year.
Despite flying over six million passengers—up 14 percent year on year—the airline implemented stimulation efforts by offering lower fares, resulting in an average fare of P2,577 per passenger, 15 percent lower than last year.
Combined with pressures from fleet and financing expenses, operating income for the quarter dropped to P202 million from P2.4 billion, and the company reported a net loss of P173 million compared to a net income of P1.3 billion in the same period last year.
CEB has strategically deployed new aircraft to expand its hubs in Cebu, Clark, Davao, and Iloilo, as well as introduced larger aircraft in Manila. Its recent acquisition of AirSWIFT has expanded its turboprop fleet, adding El Nido to its network, one of the Philippines’ top leisure destinations.
“CEB has a unique opportunity to grow when others cannot. So, despite the short-term impact to margin development, we will be growing rapidly, creating a robust network across the Philippines to expand and strengthen our market presence,” said Cebu Pacific Chief Financial Officer Mark Cezar.
Cezar added that CEB anticipates reaching nearly 60 percent domestic market share in the fourth quarter, up from 52 percent pre-pandemic, with ongoing investments in airports and aircraft set to unlock significant market potential and contribute to the Philippines’ growth trajectory.