Cebu Pacific witnessed a notable financial uplift in Q1 of 2024. The company reported a substantial revenue of P25.3 billion, marking a 21% increase from the previous year. This surge in revenue is a reflection of the robust growth in its passenger business, which soared to nearly P18 billion—a 25% rise compared to the same period last year.
From January through March, Cebu Pacific experienced a 14% increase in passenger numbers compared to the previous year, flying over 5.5 million passengers. This increase also represents a 3% rise from the preceding quarter. The airline attributes this growth to a resurgence of travelers during the holiday seasons—Christmas and Easter—as well as the vibrant festivities across the Philippines. Additionally, the airline expanded its international presence with new routes like Manila to Danang, enhancing its global connectivity.
The airline’s ancillary business also showed promising growth, generating over P6.2 billion, a 14% increase year-on-year. This growth was supported by the increased passenger traffic. The cargo division of Cebu Pacific wasn’t left behind, as it transported 35 million kilos of cargo, achieving a 16% year-on-year increase. This cargo movement contributed nearly P1.3 billion in revenue, up by 11% from last year.
Operational Costs and Profitability
Operational expenses saw a 15% increase, totaling almost P23 billion. This rise was primarily due to escalated flying operations and fleet-related expenses, as the airline managed 14% more flights than in the previous year. The fleet also expanded with an addition of 17 aircraft, aimed at enhancing operational resilience and reliability while fostering growth.
Despite the increase in expenses, Cebu Pacific recorded an operating income of P2.6 billion for the first quarter, a remarkable 114% growth year-on-year. Net income followed suit, with a 108% increase from last year, reaching over P2.2 billion.
“As Cebu Pacific steps into 2024, the airline is committed to sustaining the positive momentum it has started in the past year. Given its widest network in the Philippines, with over 35 domestic and 24 international destinations, we will continue our mission to provide safe, reliable, and affordable flights to every Juan,” said Mark Cezar, Chief Financial Officer of Cebu Pacific.
Cebu Pacific’s first quarter of 2024 sets a promising pace for the year. With advancements in both passenger and cargo sectors, coupled with strategic route expansions, the airline is well-positioned to maintain its trajectory of growth and profitability.
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