Cebu Pacific scraps dividend payout plan

MANILA, Philippines — Low-cost carrier Cebu Pacific is abandoning an initial plan to bring back common dividends, as it looks to save cash to ensure business survival in a time when jet fuel prices are spiking.

Cebu Pacific’s parent Cebu Air Inc. has confirmed that it is suspending dividend payouts this year to preserve its finances.

The airline was earlier planning to reinstate common dividends, but it had to put that aside in light of recent developments, particularly the geopolitical conflict in the Middle East.

Cebu Pacific is dealing with surging jet fuel prices triggered by supply disruptions in the Middle East, the world’s largest oil producer. At one point, jet fuel prices exceeded the $200-per-barrel level, forcing airlines across the globe to cut flights.

Cebu Air chairman Lance Gokongwei said the airline is taking a measured stance over the next few months. This way, Cebu Pacific is capable enough of responding to the changing conditions of the aviation industry.

“Mr. Gokongwei informed the shareholders that common dividends will no longer be pursued for the current year, emphasizing that the company’s priority is to maintain its strong cash position through disciplined liquidity measures,” Cebu Pacific said.

Gokongwei is confident that the airline can overcome current challenges, but sacrifices must be made for now to protect long-term value.

Cebu Pacific more than doubled its profit to P12.3 billion in 2025 from P5.4 billion in 2024, as it gained from the expansion of international flights, paired with an increase in non-core gains.

The carrier owned by the Gokongweis generated P119.9 billion in revenue, lifted by a 13-percent rise in passenger income to P80.8 billion. The country’s biggest airline flew a record 26.9 million guests, and it was poised to reach 30 million this year.

Cebu Pacific CEO Michael Szucs last month said the airline might review its initial targets to consider the impact of Middle East tensions on consumer spending and rising costs. Filipinos are expected to reduce their non-essential spending, and this may temper flight demand.

“We have to review [that] because this year, a lot has changed. It is difficult to say. Last year, we were at 27 million, this year we were expecting to grow to about 30 million,” Szucs said.

Based on the monitor of the International Air Transport Association, jet fuel prices went up by one percent on a weekly basis to $181.22 per barrel as of May 1.