Cebu Pacific (PSE: CEB), the leading carrier in the Philippines, continues to strengthen its position in the region with the arrival of its fifth new aircraft for 2024.
This recent addition, a fuel-efficient Airbus A320neo, landed at Ninoy Aquino International Airport last week, on 21 May 2024.
“Expanding our fleet with another NEO aircraft aligns perfectly with our commitment to reducing our environmental impact,” said Alex Reyes, Chief Strategy Officer at Cebu Pacific.
“We’re taking a proactive stance in minimizing our carbon footprint while simultaneously addressing the rising demand for air travel.”
Cebu Pacific Growing Fleet
Cebu Pacific boasts one of the youngest fleets globally. Their diverse commercial aircraft mix includes eight Airbus 330s, 39 Airbus 320s, 21 Airbus 321s, and 14 ATR turboprop aircraft, enabling the most extensive network coverage in the Philippines.
Notably, Airbus NEOs represent the latest generation of aircraft, burning 15% less fuel per flight compared to their predecessors. This translates to a significant reduction in carbon emissions.
Currently, Cebu Pacific offers flights to 35 domestic and 24 international destinations across Asia, Australia, and the Middle East.
Strong Travel Demand & Double-Digit Profit Growth
Cebu Pacific reported robust financial performance for the first quarter of 2024. Revenue reached P25.3 billion, a 21% increase compared to the same period last year.
Passenger revenue specifically surged by 25% year-on-year, reaching almost P18 billion. This growth is attributed to a surge in travel during the Christmas holidays, Easter break, and other local festivals.
Additionally, Cebu Pacific increased flight frequencies on popular routes and expanded its international network with the launch of the Manila-Danang route.
Ancillary revenue, driven by the higher passenger count, also witnessed a 14% year-on-year increase, reaching over P6.2 billion.
The cargo business mirrored this positive trend, experiencing a 16% year-on-year growth in cargo volume (35 million kilos) and an 11% increase in revenue (almost P1.3 billion).
Operating expenses increased by 15% year-on-year, totaling P23 billion. This rise reflects the increase in flight operations and fleet-related costs.
Compared to the same period last year, Cebu Pacific operated 14% more flights and expanded its fleet by 17 aircraft to enhance operational resilience and support growth.
Despite the higher expenses, Cebu Pacific recorded a significant improvement in profitability. Operating income reached P2.6 billion for Q1 2024, reflecting a 114% growth year-on-year.
Net income also witnessed a substantial increase of 108% over the same period, reaching over P2.2 billion.
“As Cebu Pacific enters 2024, we remain committed to maintaining the positive momentum achieved last year,” said Mark Cezar, Chief Financial Officer at Cebu Pacific.
“Leveraging our extensive network, with over 35 domestic and 24 international destinations, we will continue to fulfill our mission of providing safe, reliable, and affordable air travel for every Filipino.”
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