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Cebu Pacific flies to net income of P3.75 billion in H1 2023, from P9.50 billion net loss in H1 2022, propelled by greater passenger and flight traffic
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Revenue soars 110.6% as passenger revenue skyrockets 158.2% and ancillary revenues soar 109.9%
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Passenger volume surges 63.3% while the number of flights rose 47.5%
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Cargo revenue falls 44% due to lower cargo kilograms flown and lower yield from cargo services
Cebu Pacific reported a net income of P3.75 billion in the first half of 2023 on the back of greater passenger and flight traffic, a reversal from the P9.5 billion net loss in the same period last year.
Revenue for the first six months reached P43.55 billion, 110.6% higher than the P20.68 billion generated during the same period last year, parent firm Cebu Air Inc. said in a regulatory disclosure.
The overall jump in revenue was primarily driven by a significant increase in passenger volume and flights due to strong demand for travel. Additionally, most parts of the country remained under a more relaxed alert level in the first half, enabling the airline to resume its regular pre-pandemic services.
Passenger revenues shot up 158.2% in the first semester to P30.13 billion from P11.67 billion in the same period last year.
Cebu Air attributed this to a 63.3% surge in passenger volume from 6.3 million to 10.3 million, as the number of flights climbed 47.5%, lifting the seat load factor from 74.6% to 84.8%. Average fares also rose primarily due to an increase in the proportion of longer-distance international flights.
Cargo revenues, on the other hand, shrank 44% to P2 billion from P3.57 billion due to lower cargo kilograms flown and lower yield from cargo services.
Ancillary revenues, meanwhile, more soared 109.9% to P11.43 billion from P5.45 billion largely due to higher passenger volumes and flight activity during the period.
Operating expenses grew 38% to P39.79 billion from P28.84 billion, mostly driven up by ramped up operations as COVID-19 restrictions eased, since a material portion of its expenses is based on flights and flight hours.
As of June 2023, Cebu Pacific operated a flight network serving 78 domestic and 29 international routes with a total of 2,869 scheduled weekly flights.
This year, Cebu Pacific has increased its aircraft deliveries to a record high of 21 from 15 to further improve its operational resiliency amid growing demand for air travel.
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