Cebu Pacific posted total revenue of P74.5 billion for the first nine months of 2024, marking an 11% year-on-year increase. This growth reflects heightened demand, with the airline flying 17.5 million passengers during this period, a 13% rise compared to the same timeframe in the previous year. Cebu Pacific’s increased passenger volume led to an average seat load factor of 84.9%, underscoring the airline’s capacity to attract a larger number of travelers.
Despite strong revenue growth, Cebu Pacific reported that its operating income fell 8% to P5.7 billion compared to last year, while net income decreased by 33%, reaching P3.4 billion. The airline attributed this drop to elevated operational expenses, primarily linked to its ongoing investment in fleet expansion and additional engines. Cebu Pacific ended September 2024 with a fleet of 91 aircraft, representing a net increase of 10 aircraft over the same period last year. Additionally, it purchased 10 spare engines to support operational reliability as the company continues its expansion.
Third Quarter Impact from Lower Fares and Shifting Travel Patterns
During the third quarter of 2024, Cebu Pacific generated P23.1 billion in revenue, representing a slight 1% decrease from the same quarter last year. This shift was largely due to a change in seasonal demand, impacted by the earlier start of the K-12 school year. Over six million passengers flew with Cebu Pacific in the third quarter alone, a 14% increase year-on-year, reflecting strong growth in passenger numbers. However, the airline employed promotional fares to stimulate demand, leading to a decrease in average passenger fare to P2,577, down 15% from last year.
As a result, Cebu Pacific experienced a decline in operating income for the quarter, posting P202 million, down from P2.4 billion in the third quarter of the previous year. The airline also recorded a net loss of P173 million, a reversal from a net income of P1.3 billion in the same period last year. The combination of increased operating expenses related to fleet expansion and the shift in seasonal demand patterns contributed to this loss.
Network Expansion and Fleet Growth
Cebu Pacific deployed its new aircraft to expand its regional hubs across Cebu, Clark, Davao, and Iloilo, while also introducing larger aircraft on routes from Manila to accommodate increasing passenger demand. In addition to these expansions, Cebu Pacific recently acquired AirSWIFT, enhancing its turboprop fleet and integrating El Nido—a prominent leisure destination in the Philippines—into its network. This strategic expansion strengthens Cebu Pacific’s position within the domestic market, providing wider connectivity options and supporting the airline’s long-term growth goals.
Mark Cezar, Chief Finance Officer of Cebu Pacific, stated, “CEB has a unique opportunity to grow when others cannot. So, despite the short-term impact to margin development, we will be growing rapidly, creating a robust network across the Philippines to expand and strengthen our market presence.” He further highlighted that Cebu Pacific aims to capture nearly 60% of the domestic market by the fourth quarter of 2024, a rise from the 52% share held before the pandemic. According to Cezar, the airline’s investments in airport facilities and fleet expansion open up a substantial market potential and allow Cebu Pacific to play a key role in the overall growth of the Philippine aviation market.
