Fleet expansion drags Cebu Pacific’s net income in 2024

Gokongwei-led budget carrier Cebu Pacific saw a decline in its bottom line in 2024 amid cost pressures resulting from its fleet expansion initiative.

In a news release on Thursday, Cebu Pacific said its net income decreased to P5.4 billion last year from P7.9 billion in 2023 due to “increased fleet and financing costs.”

The airline said it ended 2024 with a fleet of 98 aircraft, adding 13 new aircraft from 2023.

"We have always been optimistic about the potential of Philippine aviation, driven by the country’s strong economic, geographic, and demographic advantages. Strategic investments in our fleet and hubs have been key to Cebu Pacific’s growth,” said Cebu Pacific chief finance officer Mark Cezar.

“By capitalizing on these opportunities early, we’ve positioned ourselves as leaders in both the domestic and international markets. This solid foundation gives us great confidence as we look ahead to 2025, where we anticipate continuing our rapid growth and improving both operational and financial performance,” said Cezar.

Cebu Pacific booked total revenues of P104.9 billion, up 16% year-on-year.

The growth was driven by its passenger business, which generated P71.3 billion, up 14% from the prior year.

Cebu Pacific said it carried 24.5 million passengers in 2024, up 18% year-on-year, while maintaining a strong seat load factor of 84.4%. 

The budget carrier said it captured 54.1% of the domestic market and 20.6% of the international market for 2024. —AOL, GMA Integrated News