Cebu Air Inc. (PSE: CEB), generated P22.7 billion total revenue for the second quarter of 2023, 62% higher than the same period last year but still 4% below the second quarter of 2019, pre-pandemic.
This is on the back of over 36,300 flights flown during the quarter, which was 22% higher year on year but 1% below the same period in 2019.
Average Seat Load Factor (SLF) likewise improved to 86% compared to 77% in the same period last year, but still lower than SLF of 90% back in 2019.
CEB flew 5.46 million passengers during the quarter, 29% higher year on year. Overall improvement in passenger business was seen year on year especially as most international destinations have eased travel restrictions since last year.
Passengers, however, were still 8% below pre-pandemic levels, as short haul international travel remained well below 2019.
Further, the airline faced significant operational headwinds in the second quarter, including global industry challenges and weather-related issues, which tempered CEB’s initial growth outlook.
Operating expenses totaled P20.2 billion, 20% up year on year and 9% higher than 2019. These were driven by the increase in fuel prices, aircraft maintenance, and other fleet-related costs.
Operating income for the quarter was over P2.5 billion, a reversal from last year’s loss of over P2.8 billion, and a 50% recovery of pre-pandemic operating income for the same period.
Amidst the challenging environment, CEB turned from a P1.9 billion net loss in the second quarter last year to a net income of P2.7 billion for the second quarter of 2023. With this, CEB ended the first half of 2023 recovering back to positive equity of P726 million. Total assets stood at P165 billion, covering its fleet of 80 aircraft.
“The past few months have been one of the toughest for CEB, but we remain steadfast in our commitment to provide safe, reliable, and affordable flights to our passengers and support economic growth in the Philippines and across the region” noted Alexander Lao, CEB’s President and Chief Commercial Officer.
