Gokongwei-led Cebu Pacific, riding on the strong resurgence in travel demand during the peak summer period, has reversed its fortunes, swinging into profitability for the six months ended June.
According to a regulatory filing, the budget carrier reported a net profit of P3.749 billion for the initial half of the year. This comes as a significant turnaround from the P9.501 billion loss incurred in the corresponding period of the prior year.
Driving this impressive performance, revenues more than doubled, surging to P43.55 billion. The robust growth was fueled by a surge in passenger volume and heightened flight activities, a response to the surging demand for travel as nations worldwide emerged from the pandemic-imposed constraints and began reopening their borders.
Taking advantage of a more relaxed alert level classification in various parts of the nation, Cebu Pacific was able to seamlessly revert to its regular pre-pandemic service offerings.
Passenger revenues recorded a 158.2 percent jump, reaching P30.13 billion. This boost can be largely attributed to a 63.3 percent surge in passenger volume, skyrocketing from 6.3 million to 10.3 million.
Facilitating this growth was a 47.5 percent increase in flight frequencies, accompanied by a 10.2 percentage point rise in seat load factor, ascending from 74.6% to 84.8%.
Average fares experienced a 58.2 percent ascent, reaching P2,934. This significant increase from the P1,855 reported in the same period of the previous year predominantly stemmed from an augmented proportion of longer-haul international flights.
However, the cargo segment faced a setback, witnessing a stark decline of 44 percent to P1.572 billion, attributed to reduced transported cargo kilograms and a decreased yield from cargo services.
Cebu Pacific’s operating expenses climbed by 38 percent to P39.79 billion, primarily driven by the expanded operations of the group, resulting from the relaxation of COVID-19 restrictions, as well as the depreciation of the Philippine peso against the US dollar.