Cebu Air Inc. generated P26.1 billion in revenue in the second quarter, a 15% increase from the previous year, thanks to the six million passengers that flew the airline in the second quarter, the highest passenger count in a single quarter in its history.
The number of passengers is 10% higher than the previous year, fueled by the summer traffic from April to May, the school break in June, and additional frequencies in high-traffic destinations such as Cebu, Davao, and General Santos. Strong demand for regional destinations such as Hong Kong, Japan, Vietnam, and Australia also contributed to the growth.
"This has been a crucial quarter for our airline, marked by significant achievements and milestones. We've set new highs in terms of passengers flown, finalized our quasi-reorganization, and made the historic order of up to 152 aircraft from Airbus," said CEB chief executive officer Michael Szucs.
"This substantive commitment, through the new aircraft order, aligns CEB's ability to grow with the robust economic story in the Philippines and its ongoing investment in infrastructure."
With this, the passenger business generated almost P18 billion in revenues, 13% higher year on year, while the ancillary business generated close to P7 billion, 16% higher year on year.
CEB's cargo business also showed a notable improvement, as it flew close to 36 million kilos of cargo in the second quarter, 39% higher than last year. This is because over 38 thousand flights were flown for the quarter, 5% higher year on year. With this, CEB's cargo business generated over P1.4 billion in revenue, up 59% from the previous year.
Operating income improved to P2.8 billion, 12% higher than in the same period last year. After considering financing costs and other non-core gains and losses, CEB's net income for the second quarter was P1.3 billion.
On August 2, 2024, the Securities and Exchange Commission approved CEB's quasi-reorganization through deficit reclassification. This equity restructuring removes CEB's retained deficit as of the end of 2023 through a counterpart application of its capital surplus. Increased profitability and improving capital efficiency will accelerate the potential for future shareholder returns and distributions.
Meanwhile, Cebu Pacific said it is launching another seat sale with flights as cheap as P88 in August. The airline said the seat sale from August 7 to 12 will "allow travelers to book value-for-money flights ahead of the holiday season." Cebu Pacific said flights can be booked to select domestic and international destinations for as low as P88 one-way base fare, exclusive of fees and surcharges.
The Gokongwei-led airline said some domestic destinations are Kalibo, Zamboanga, General Santos, and Davao.
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