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Elijah Felice Rosales - The Philippine Star
May 10, 2025 | 12:00am
A Cebu Pacific Air passenger plane takes off from the Ninoy Aquino International Airport in Manila on April 3, 2024.
AFP / Ted Aljibe
MANILA, Philippines — The earnings of low-cost carrier Cebu Pacific fell below P500 million in the first quarter on higher operating and interest expenses.
Cebu Pacific’s parent Cebu Air Inc. yesterday reported a net income of P466 million for the first quarter, down by 79 percent from P2.24 billion in the same quarter last year.
The budget airline booked a 20-percent hike in revenue to P30.42 billion, but this gain was erased by a 26-percent increase in expenses to P28.46 billion.
Cebu Pacific raised P21.16 billion in revenues from its passenger business, lifted by an expanded fleet and network that boosted demand. As of March, Cebu Pacific manages a fleet of 99 aircraft that operates more than 3,200 flights weekly.
It was able to raise its passenger volume by more than a fourth to 6.95 million in the first quarter. The airline’s load factor went up to 84.9 percent, meaning at least eight in 10 seats were booked.
The airline, owned by the Gokongweis, also made P372.71 million in gains from selling two of its aircraft, an ATR 72-500 in January and an Airbus A320s in February.
Cebu Pacific said it expects to sell two more A320s worth P2.3 billion within the year.
The interest spending for debt and lease soared by 42 percent to P1.87 billion in the first quarter from P1.32 billion a year ago as it accepted additional aircraft and engines over the past few months.
The carrier received 15 aircraft and 13 engines in the past 12 months to support its network expansion.
Cebu Pacific chief financial officer Mark Julius Cezar said the airline should still be able to grow its profit in the future.
He noted that profit might be lower for the meantime, as the airline invests its capital on expansion opportunities and revenue-generating assets.
“We remain optimistic on our financial outlook, (as) underlying demand for affordable air travel remains strong and we have made the earlier strategic investments to ensure resilient operations,” Cezar said.
