Cebu Air posts narrower net loss in third quarter

Cebu Pacific operator Cebu Air Inc. reported a narrower net loss in the third quarter of the year, as the budget carrier saw triple-digit growth in revenues during the period.

In an emailed statement, Cebu Air said its net loss improved to P2.5 billion in July to September from P8.2 billion the same quarter last year.

Revenue for the quarter surged by 419% to P16.9 billion from P3.2 billion, as passengers flown during the period leaped by 489% to over 4 million from with the continuous easing of travel requirements.

The carrier said its seat load factor grew to 74% from 57.5% the same quarter last year, bringing the passenger business up 724% and the ancillary business up 725%, while its cargo business increased by 41%.

Operating expenses for the quarter increased by 112% on the back of higher jet fuel prices.

“We are encouraged by some notable improvements in our numbers amidst the ongoing challenges related to fuel and foreign exchange rates,” Chief Financial Officer Mark Cezar said.

“We remain cautiously optimistic that through our ongoing initiatives, coupled with a sustained increase in passenger traffic, we will soon see better days ahead,” he added.

Cebu Pacific operated over 30,300 flights in the third quarter to reflect a 318% increase from the same quarter in 2021, as it boosted its international network given the resumption of trips to Sydney and Brunei.

The carrier already surpassed its December 2019 level for domestic capacity after registering 109% restoration in July, and it is optimistic that operations will return to pre-pandemic levels late 2023.

Just last month the Civil Aeronautics Board (CAB) announced lower fuel surcharges for domestic and international flights for the month of November. — RSJ, GMA Integrated News