Cebu Air Inc., the operator of Cebu Pacific, reported a 11% increase in total revenue for the first nine months of 2024, reaching P74.5 billion. This growth was driven by a 13% increase in passenger numbers, with the airline carrying 17.5 million travelers during the period.
However, the company’s operating income declined by 8% to P5.7 billion, and its net income fell by 33% to P3.4 billion. The margin pressure was attributed to increased expenses related to the airline’s investment in additional aircraft and engines.
“CEB has a unique opportunity to grow when others cannot. So, despite the short-term impact to margin development, we will be growing rapidly, creating a robust network across the Philippines to expand and strengthen our market presence,” said Cebu Pacific Chief Finance Officer Mark Cezar.
In the third quarter of 2024, Cebu Pacific’s revenue declined by 1% year-on-year to P23.1 billion, primarily due to a shift in seasonality driven by the earlier start of the K-12 academic year.
The airline carried over six million passengers during the quarter, a 14% increase compared to the same period last year, but lower average fares led to a decline in operating income to P202 million and a net loss of P173 million.
According to Cebu Pacific, its expansion efforts have included deploying new aircraft to regional hubs in Cebu, Clark, Davao and Iloilo, as well as upgrading to larger aircraft in Manila.
The airline also recently acquired AirSWIFT, growing its turboprop fleet and bringing El Nido, one of the Philippines’ most popular leisure destinations, into its network.
Furthermore, Cebu Pacific launched 18 new flights in October 2024, which is expected to contribute to the airline’s growth in the fourth quarter. The company is also set to complete its target of 18 aircraft deliveries for 2024 alone.
“Airport and aircraft investments open a significant market potential for CEB, and these initiatives allow us to take advantage, as well as contribute to the overall Philippine growth story,” Cezar added.
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