Good news for Cebu Pacific once again as the airline takes a more robust rebound this year! In its latest financial performance, Cebu Pacific was able to grow its year-on-year passenger numbers this 2nd quarter of 2022 by 644%, compared to the same period in 2021. Its average load factor rose to 77% compared to 56% in the same period last year.
The uptick in numbers is due to the robust domestic travel demand and easing travel restrictions on international borders.
Decrease losses
Cebu Pacific also reduced its net loss by 31% compared to the same period the previous year. According to a report from Simple Flying, Cebu Pacific’s financial results showed that it has reduced its net loss to P9.5 billion ($171 million) for the first half of 2022. This was a 31% decrease compared to the P13.8 billion ($248 million) net loss sustained in the same period last year.
The recovery continues on
Compared to last year’s period, Cebu Pacific’s 2Q revenue is reaching over P20 billion ($359 million). This includes both passenger and cargo revenue. Amidst the increase in revenue, expenses have increased, reaching P28 billion ($503 million) compared to P18 billion ($323 million) in the previous year.
The airline’s most significant expense was fuel costs, which usually contribute to 20 to 30% of the airline’s total expenses.
Cebu Pacific continues to switch to newer but more fuel-efficient aircraft, which consists of Airbus NEO jets, to reduce fuel costs further. The airline’s goal is to operate an all-NEO fleet by 2027.
Cebu Pacific is also optimistic that more regional countries will further open their borders, particularly China. This is one of the largest markets for the airline. China represents a significant source of business and leisure travelers for the Philippines, and the impact of the country’s border closure will be felt for the foreseeable future.
The airline, however, continues to grow its network to bring back its total capacity to pre-pandemic levels. In the past months, Cebu Pacific restored its flights to resumed its flights to Hanoi, Bali, and Taipei. In July, the airline made its long-awaited return to Sydney for the first time since March 2020.
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