Cebu Pacific widens loss to nearly P13 billion

MANILA, Philippines — Low-cost carrier Cebu Pacific has fallen into a wider net loss of almost P13 billion in nine months, as expenses rose quicker than revenue, pulled by higher jet fuel prices.

Based on its financial report, Cebu Pacific’s parent Cebu Air Inc. said its net loss worsened to P12.84 billion in the nine months to September.

During the same period last year, Cebu Pacific was cruising on smooth skies with a P9.46-billion profit, showing how drastic the impact of elevated jet fuel prices is.

Cebu Pacific booked a 10-percent growth in revenue to P96.23 billion. However, the airline took a 24-percent hike in expenses to P99.23 billion, as jet fuel rates ballooned to fresh highs.

The airline owned by the Gokongweis earned more revenues as it flew more passengers between January and September. Cebu Pacific’s passenger volume grew by four percent to 20.77 million, showing the resilience of Philippine air travel demand.

This is why Cebu Pacific president and chief commercial officer Alexander Lao is confident the carrier would set a new record for passenger traffic this year in spite of economic risks.

Lao said the airline is projected to surpass the 27-million level in 2026, beating the previous high of 26.88 million last year.

However, Cebu Pacific is suffering from rising prices, recording a 52-percent hike in flying costs to P44.13 billion, as jet fuel prices go up because of security tensions in the Middle East.

The carrier also raised servicing costs by eight percent to P12.41 billion. Cebu Pacific said it has paid more for aircraft servicing due to new fees applied by airport operators.

Still, Cebu Pacific is matching demand with capacity. It will secure a final delivery for an Airbus A330neo by December, leading the industry with a fleet of 100 aircraft.

For 2027, Lao said Cebu Pacific would receive seven new aircraft—all of which are single-aisle jets—as the airline expands its fleet to meet future demand.

Cebu Pacific is the country’s largest carrier by fleet and passenger size, offering more than 2,190 flights weekly to domestic and international destinations.