Cebu Pacific (PSE: CEB) generated total revenue of P23.3 billion for the third quarter of 2023, 39% higher year-on-year and 23% above same period in 2019. This was on the back of over 5.3 million passengers flown onboard 35,000 flights, which are 27% and 18% higher year-on-year, respectively. Seat load factor improved to 83.7%, 9.7 percentage points higher year-on-year.
CEB grew its international operations steeply, as it flew over 1.3 million passengers for the quarter, a 228% increase year on year. CEB’s international network recovery continued to gain traction, especially with the opening of more North Asian countries such as Japan, Taiwan and Hong Kong. Meanwhile, domestic travel remained strong. CEB flew 4 million domestic passengers during the quarter, up 5% year on year and already above pre-pandemic levels.
CEB saw a notable increase in travel demand in the third quarter, attributable to the change in school calendars, which shifted graduation and school breaks towards the months of June to August. This strengthened travel demand not only for domestic, but also for international markets, particularly evident on routes with high OFW population.
Operating expenses, on the other hand, totaled almost P21 billion, both higher than last year and 2019 by 5% and 16%, respectively. These increases were primarily attributed to higher fuel costs and fleet-related expenses resulting from the addition of more aircraft.
Operating income reached P2.4 billion, a reversal from last year’s operating loss of over P3 billion, and 170% above the 2019 level.
CEB recorded a net income of P1.3 billion, a turnaround from last year’s net loss of P2.5 billion, as well as 2019’s net loss of P384 million.
“CEB continued its financial recovery in the third quarter, and we remain optimistic on its future growth” said Mark Cezar, Chief Finance Officer.