Gokongwei-led budget carrier Cebu Pacific swung back to profitability last year on the back of the increase in passengers following the normalization of air travel during the period.
In a news release on Tuesday, Cebu Pacific announced it booked a net income of P7.9 billion in 2023, a turnaround from a net loss of P14 billion in 2022.
The airline posted revenues of P90.6 billion, up 60% year-on-year, led by the growth of the passenger business, which rose by 78% to P62.5 billion.
In the fourth quarter alone, Cebu Pacific saw its revenues grow by 23% to P23.7 billion, while its bottom line also reverted to positive territory at P2.9 billion from the P1.9 billion net loss seen in the last quarter of 2022.
Cebu Pacific said it had over 20 million passengers and operated 140,000 flights in 2023, up 41% and 30%, respectively.
The airline’s seat load factor in 2023 hit 84%, which was nine percentage points higher than in 2022.
Meanwhile, Cebu Pacific recorded total operating expenses of P82 billion, up 20% from a year earlier due to higher fuel and fleet-related costs.
The airline said it took 18 aircraft deliveries throughout 2023, increasing its fleet to improve operational resiliency while sustaining capacity growth.
The budget carrier added that it spent capital on its digitalization and other customer-first initiatives to improve its services.
“Moving forward, we are optimistic that Cebu Pacific’s solid 2023 financial results will set the foundation for a stronger financial performance in 2024,” said Mark Cezar, Cebu Pacific chief financial officer.
