Budget airline Cebu Pacific’s (CEB) net profit jumped to P7.9 billion from an operating income of P8.6 billion, both of which represented a significant turnaround from losses in 2022.

The airline also recorded a 60 percent growth in revenues to P90.6 billion in 2023 from the previous year.

With a revenue of P62.5 billion, which is a 78 percent increase, the passenger business led to a sharp rebound.

Over 20 million passengers and over 140,000 flights were recorded in 2023, representing increases of 41 percent and 30 percent, respectively, over the previous year.

The seat load factor increased to 84 percent, a gain of nearly nine percentage points from the previous year.

Due to increased fuel and fleet-related costs, total operating expenses came to P82 billion, a 20 percent increase from the previous year.

To boost its operational resilience and maintain capacity development, CEB took delivery of 18 new aircraft in 2023.

Its expenses also included various measures to enhance customer-first goals and digitization.

EBITDA sharply higher

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose sharply from P664 million in 2022 to P21.8 billion.

The airline also recorded its highest revenue quarter ever in the fourth quarter, bringing in P23.7 billion, a 23 percent increase over the previous year.

In contrast to the operational loss of P232 million in the same quarter of 2022, the operating income in the final quarter of last year was P2.4 billion. In contrast to the P1.9 billion financial loss sustained during the same period in 2022, the fourth quarter’s net income of P2.9 billion represented a positive development.

“We are optimistic that Cebu Pacific’s solid 2023 financial results will set the foundation for a stronger financial performance in 2024,” Mark Cezar, CEB chief finance officer, said.