Cebu Pacific sees return to profitability in Q1

Budget carrier Cebu Pacific on Wednesday expressed optimism about its return to profitability as early as the first quarter of 2023 amid the restoration of its pre-pandemic capacity for both domestic and international destinations.

At a press conference in Makati City, Cebu Pacific vice president for marketing and customer experience Candice Iyog said that the airline restored 100%, or 34 out of 34 of its domestic destinations.

The 25 international destinations served by Cebu Pacific will all be operational by March.

Cebu Pacific says it restored 100% of its pre-pandemic capacity for both domestic and international destinations. pic.twitter.com/YIyw92hGMi

— Ted Cordero (@Ted_Cordero) January 25, 2023

Banking on the recovery of travel demand and the restoration of 100% of its flights, Cebu Pacific president Xander Lao said that for 2023 the airline is "hoping for a full-year net income."

"By first quarter we aim and we hope to be profitable…," Lao said. "The first quarter is traditionally strong, particularly for January."

However, he cited risks to positive financial performance, such as volatile fuel prices.

"It really depends because fuel prices started going up again, that’s going to be a challenge. But the one thing that’s benefited [us] is [that] the peso [has] strengthened," Lao said.

If Cebu Pacific books a net income for the January to March period, it will be the airline’s first since the first quarter of 2020, according to the carrier’s chief.

Asked if the New Year’s Day airspace shutdown will affect Cebu Pacific’s return to profitability, the airline’s chief said, "It’s just one day."

"Obviously, it’s not a great experience for those that were impacted pero those that were traveling [from] January 2 onwards, it normalized immediately... I think it is what it is, [we've] dealt with it, and it won’t impact our recovery," Lao said.

Meanwhile, Cebu Pacific is increasing the frequencies to these international destinations:

The airline will also fully restore flights to all its 25 international destinations in 14 countries by March.

As of the third quarter of 2022, the budget carrier booked a net loss of P2.5 billion, down from P8.2 billion in the same period a year earlier, as revenues grew amid a rise in passengers flown during the period. —VBL, GMA Integrated News