Cebu Air, Inc. on Thursday said net loss narrowed to P1.9 billion in the second quarter of the year from P6.5 billion last year , on the back of higher passenger volume after travel restrictions eased.
The airline saw its revenue for the second quarter increase by 337 percent to P13.97 billion from P3.2 billion in the same period in 2021.
Similarly, the cargo business sustained its growth with a 15 percent increase to P1.7 billion vs last year on the back of higher cargo volumes.
“Amidst the risks posed by expensive jet fuel, peso depreciation and interest rate hikes, CEB remains cautiously optimistic that we can turn the tide soon as domestic demand looks robust and international borders continue to reopen,” Mark Cezar, Cebu Pacific chief financial officer said.
Total operating expenses totaled P16.8 billion, 86 percent higher year on year despite 323 percent more flights. Fuel was the biggest contributor to expenses due to the steep hike in jet fuel prices.
“We continue to stay true to our commitment of providing accessible air transport service for everyone,” he added.
The airline’s load factor stood at 77 percent, 21 percentage points higher than last year’s 56 percent. The improvement in load factor resulted from the network recovery driven by the domestic market where passengers flown increased 562 percent year-on-year while flights grew 350 percent year-on-year.
Cebu Pacific’s international network has also started to recover as travel requirements of other Southeast Asian countries such as Singapore and Thailand eased.The airline also expanded its network as it resumed flights to Hanoi, Bali, and Taiwan in the second quarter.