Low-cost carrier Cebu Pacific has staged a notable recovery from the pandemic-induced losses, reporting a net income of P7.9 billion for the fiscal year 2023.
The airline’s revenue soared to P90.6 billion, a substantial 60% increase compared to the previous year, driven primarily by its passenger business which contributed P62.5 billion, a 78% year-on-year growth.
The positive financial performance was made possible with the transport over 20 million passengers across more than 140,000 flights last year, marking increases of 41% and 30%, respectively, from 2022 levels.
The seat load factor, a key metric in the aviation industry, improved to 84%, nearly 9 percentage points higher than the previous year.
While operating expenses rose by 20% to P82 billion due to higher fuel and fleet-related costs, Cebu Pacific’s strategic move to acquire 18 new aircraft in 2023 bolstered its operational resilience and sustained capacity growth.
The airline’s investments in digitalization and customer-centric initiatives also contributed to the increased expenses.
“Moving forward, we are optimistic that Cebu Pacific’s solid 2023 financial results will set the foundation for a stronger financial performance in 2024,” said Mark Cezar, CEB Chief Finance Officer, in a press release.
The low-cost carrier recorded an operating income of P8.6 billion for the year 2023, compared to the losses reported in the year 2022.
Q4 2023: strongest period last year
Cebu Pacific’s earnings before interest, taxes, depreciation, and amortization (EBITDA) soared to P21.8 billion from P664 million in 2022, reflecting the airline’s robust financial health.
The fourth quarter of 2023 proved to be particularly strong for Cebu Pacific, with the airline recording its highest quarterly revenue of P23.7 billion and a net income of P2.9 billion.
The airline recorded an operating income of P2.4 billion during this period, a significant turnaround from the operating loss of P232 million in the same quarter of 2022.
The net income for the fourth quarter stood at P2.9 billion, a reversal from the P1.9 billion net loss incurred in the corresponding period of 2022.
As the airline industry continues to recover from the challenges posed by the pandemic, Cebu Pacific’s impressive financial performance in 2023 positions it for sustained growth and profitability in the coming years.
Cebu Pacific is expected to expand frequencies on existing routes as it continues to receive aircraft deliveries this year. The low-cost carrier is anticipating 15 aircraft deliveries in 2024 to supplement the current fleet, which counted 76 aircraft as of end-2023.
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