Cebu Pacific trims net loss in Q3 amid easing travel restrictions

MANILA, Philippines — Cebu Air Inc. trimmed its net loss in the third quarter as the company saw revenues soar with travel requirements around the country eased.

In a disclosure sent to the Philipine Stock Exchange on Thursday, the Gokongwei-led operator of budget airline Cebu Pacific reported a net loss of P2.5 billion in the July-September period. This was lower by 69.5% compared to the same period a year ago. 

Revenues soared 419% on annual basis to P16.9 billion in the third quarter, benefitting from low base effects and stronger travel demand. 

For one, the budget airline reportedly flew over 4 million passengers in the third quarter. The company reckoned it flew over 30,300 flights in the third quarter alone. 

“We remain cautiously optimistic that through our ongoing initiatives, coupled with a sustained increase in passenger traffic, we will soon see better days ahead,” said Mark Cezar, chief financial officer at Cebu Pacific.

Operating expenses took a hit in the third quarter as it grew 112% on-year due to the twin effects of expensive fuel prices and a weak peso. 

Data broken down showed their passenger and ancillary business reported stellar growth on the back of easing travel restrictions. Its cargo business, which proved to be a bright spot even at the onset of the pandemic, saw revenues grow 41% on-year to P2 billion in the third quarter. 

Shares in Cebu Air shed 1.09% to close at P36.40 apiece on Thursday.