International travel, holidays drive Cebu Pacific’s net income to double in Q1
MANILA, Philippines – Cebu Pacific more than doubled its net income in the first quarter of 2024 compared to the same quarter in 2023, which it attributed to “strong travel demand.”
Cebu Pacific posted a net income of P2.24 billion in Q1 2024, up nearly 108% from the P939 million that it notched in Q1 2023. That period last year had marked the first time the low-cost carrier returned to profitability since the pandemic halted travel in 2020.
From January to March 2024, Cebu Pacific flew more than 5.5 million passengers, which was over 14% higher than the same period last year and 3% higher than the previous quarter. This growth was boosted by travelers returning from their Christmas and Holy Week breaks, along with other regional Philippine festivals. International destinations in particular saw higher passenger volume, according to a quarterly report by Cebu Pacific.
This boosted Cebu Pacific’s passenger revenue by 25% year-on-year to P17.83 billion. Its ancillary and cargo revenues likewise grew by 14% and 11%, respectively. Total revenue for Q1 2024 reached P25.3 billion, a 21% increase. (READ: Back to the skies: PAL, Cebu Pacific earn big off revenge travel in 2023)
The low-cost carrier’s operating expenses also rose by 15% to P22.65 billion, driven mainly by the increase in flights and fleet-related costs. The depreciation of the Philippine peso against the US dollar also contributed to higher expenses.
Nevertheless, Cebu Pacific’s revenue growth managed to outpace its expanded operating expenses, leading to a P2.6-billion operating income in Q1, a 114% growth year-on-year.
According to its quarterly report, Cebu Pacific serves 65 domestic routes and 33 international routes that operates 2,998 weekly flights, as of March 31, 2024. The airline maintains a fleet of 87 aircraft with an average aircraft age of 5.8 years.
Meanwhile, fellow Philippine-based full-service carrier Philippine Airlines wasn’t able to sustain its record-breaking profits in 2023, seeing its net income in Q1 2024 fall by 25% compared to the same period in 2023. The flag carrier pinned this slump on “inflationary cost pressures” and the normalization of global travel patterns after the post-pandemic surge. – Rappler.com