Low-cost airline Cebu Pacific reported its net income soared 108% year-over-year to over P2.2 billion in the first quarter of 2024. This robust profit growth was driven by strong travel demand and increased passenger numbers.
Revenue for Q1 2024 rose 21% from the prior year to P25.3 billion. The passenger business was the main growth driver, generating nearly P18 billion in revenue, up 25% year-over-year, as Cebu Pacific flew over 5.5 million passengers from January to March.
Mark Cezar, Cebu Pacific’s Chief Financial Officer, stated, “As Cebu Pacific steps into 2024, the airline is committed to sustaining the positive momentum it has started in the past year. Given its widest network in the Philippines, with over 35 domestic and 24 international destinations, we will continue our mission to provide safe, reliable, and affordable flights to every Juan.”
Passenger volume climbed 14% compared to Q1 2023 and 3% from the previous quarter. This was fueled by returning holidaymakers over Christmas and Easter, along with other festivals and events in the Philippines. Increased flight frequencies to popular destinations and the new Manila-Da Nang route also contributed.
Ancillary revenue rose 14% to over P6.2 billion on higher passenger traffic. The cargo business improved as well, with revenue up 11% to nearly P1.3 billion after transporting 35 million kilos of cargo, a 16% increase year-over-year.
Operating expenses grew 15% to almost P23 billion due to higher flying operations and fleet expenses. Cebu Pacific flew 14% more flights in Q1 2024 versus Q1 2023 and added 17 aircraft to its fleet.
The airline reported an operating income of P2.6 billion, surging 114% from a year ago.
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