CEBU AIR, Inc., the operator of budget carrier Cebu Pacific, reported a net income of P2.64 billion for 2024, down 68.3% from P8.34 billion in 2023, as rising costs outpaced revenue growth.
In its regulatory filing on Thursday, Cebu Air said total revenues grew 15.4% to P98.19 billion from P85.09 billion in 2023.
Passenger revenue increased 13.5% to P65.15 billion from P57.4 billion, while cargo revenue rose to P5.54 billion. Ancillary revenue expanded to P27.51 billion from P23.69 billion.
However, total expenses surged to P89.84 billion from P77.72 billion, weighing on profitability.
“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 Financial Officer Mark Julius V. Cezar.
In October 2024, Cebu Pacific finalized a P1.4-trillion ($24 billion) aircraft order with Airbus SE for up to 152 aircraft.
“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,” Mr. Cezar said.
In 2024, Cebu Pacific carried 24.5 million passengers, an 18% increase from 2023, with a seat load factor of 84.4%.
The airline expanded its route network, securing a 54.1% share of the domestic market and 20.6% of the international market in 2024.
At the local bourse, shares in Cebu Air closed 45 centavos or 1.34% higher at P33.95 apiece. — Ashley Erika O. Jose