Cebu Air Inc., the operator of Cebu Pacific posted a sharp drop in net income in the first quarter of the year due to costs associated with the airline’s fleet expansion.
The Gokongwei-led airline posted a net income of P466 million in the January to March period, down from the P2.2 billon profit in the same period last year.
The airline’s revenues amounted to P30.4 billion during the period, higher by 20 percent compared to the same period last year due to increased passenger traffic.
Cebu Pacific carried seven million passengers in the first quarter, up 26 percent year-on-year despite the shift in Easter holidays to April this year from March in 2024.
This increase in passenger traffic resulted in a 19 percent rise in passenger revenue to more than P21 billion, and a 22 percent increase in ancillary revenue to more than P7 billion.
By the end of the first quarter, Cebu Pacific had a fleet of 99 aircraft, serving 63 destinations and 127 routes, with over 3,200 weekly flights.
Cebu Pacific’s expanded network and capacity also enabled growth in its cargo segment, with cargo revenues rising 35 percent year-on-year to P1.7 billion, as the airline transported 51.6 million kilograms of cargo.
The airline accepted 15 aircraft deliveries and 13 spare engines over the past 12 months to support capacity growth and operational resilience amid global supply challenges.
This resulted in additional fleet and financing costs in the first quarter of 2025.
“We remain optimistic on our financial outlook. Underlying demand for affordable air travel remains strong, and we’ve made earlier strategic investments to ensure resilient operations,” Mark Cezar, Cebu Pacific chief financial officer said.
“ Leveraging on these existing assets, CEB remains well positioned for sustainable growth, and improving profitability,” he said.
