Cebu Pacific profit soars

MANILA, Philippines —  Low-cost carrier Cebu Pacific reached a cruising altitude in the first quarter of the year, doubling its profit to more than P2 billion due to the holiday boom for air travel.

Cebu Pacific’s parent Cebu Air Inc. yesterday said it doubled its net income to P2.2 billion from January and March, compared with P1.08 billion a year ago.

This as revenue improved by 21 percent to P25.3 billion as income from the passenger business hit almost P18 billion.

Cebu Pacific grew the passenger business in the first quarter, serving over 5.5 million passengers. The Gokongwei-owned airline attributed the growth to the increase in travel demand during the holidays.

Cebu Pacific observed a surge in air travel during the Christmas season and the Lenten period. It is also reaping the fruits of its investment to expand its flight network in Southeast Asia.

To recall, Cebu Pacific started mounting Manila flights to Da Nang in December 2023, enabling it to cover all corners of Vietnam with regular trips to Hanoi and Ho Chi Minh, too.

Further, Cebu Pacific gained P6.2 billion from its ancillary business and P1.3 billion from cargo deliveries, lifted by the recovery of consumer spending.

On the other hand, Cebu Pacific raised its expenses by 17 percent to P23 billion in the first quarter, spending more to keep up with the demand.

Cebu Pacific chief financial officer Mark Cezar said the airline would work on keeping its profit up for the remaining quarters of the year. Cebu Pacific will lean on its flight portfolio to sustain the upward trend of its profit.

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

For 2024, Cebu Pacific will spend P50 billion for capital expenditures, mainly for the delivery of new aircraft to build up its fleet to 92.– Rudy Santos