Recovery Process: Cebu Pacific Trims 1st Half 2022 Loss
Cebu Pacific has released its latest financial results, stating that LCC reduced its net loss to pesos 9.5 billion ($171 million) in the first half of 2022. This is a 31% decrease from 13.8 billion pesos ($248 million). During the same period last year, it recorded a net loss. The airline’s financial performance was supported by significant increases in domestic and international passenger traffic. Passenger numbers increased by 644% year-over-year in Q2, resulting in an average load rate of 77% compared to 56% in Q2 2021.
Ordering 11 more. Photo: Airbus The news comes just one week after Philippine Airlines reported its P4 billion (US$72 million) profit for the first half of 2022. Increased Revenues and Expenses With the surge in passenger and cargo services, Cebu Pacific’s revenues more than tripled over the period to over P20 billion (US$359 million). However, total airline costs also increased in the first half of 2022, reaching 28 billion pesetas (US$503 million) from 18 billion pesetas (US$323 million) last year. Unsurprisingly, the depreciation of the Philippine peso and rising interest rates pushed up fuel costs, with fuel being the biggest expense for the Manila-based airline. Despite the financial troubles, Marc Cesar, CFO of Cebu Pacific, is optimistic that the airline will soon become profitable.