Cebu Pacific trims net loss as flights resume

MANILA, Philippines — Cebu Air Inc. trimmed its losses in the first six months of the year as flight restrictions eased but persisting global headwinds pose threats to its recovery. 

In a disclosure to the Philippine Stock Exchange on Thursday, the Gokongwei-led airline reported a net loss of P9.5 billion in the first half of 2022, significantly lower by 31.12% year-on-year compared to last year’s outturn. 

“Amidst the risks posed by expensive jet fuel, peso depreciation and interest rate hikes, CEB remains cautiously optimistic that we can turn the tide soon as domestic demand looks robust and international borders continue to reopen,” said Mark Cezar, Cebu Pacific’s chief financial officer. 

In the second quarter, Cebu Pacific’s revenues expanded 337% year-on-year to P13.97 billion as its passenger and ancillary business recovered due to looser travel restrictions. 

Revenues from its cargo segment, which kept most airlines everywhere afloat for most of the pandemic, grew 15% year-on-year to P1.7 billion in the second quarter. 

Operating expenses ballooned 86% year-on-year to P16.8 billion in the second quarter, driven by pricier jet fuel costs. 

Earnings before interest, taxes, depreciation, and amortization skyrocketed 121% to P453 million in the second quarter. 

Shares at Cebu Pacific finished 5.12% up at P45.2 apiece at the close of Thursday trading.