CEB passenger traffic dips in August

Budget airline Cebu Pacific’s (CEB) passenger traffic dipped slightly in August as domestic demand softened during the lean travel season, though higher seat load factors helped offset the decline. 

The company said Monday that the seat load factor improved to 83.7 percent from 81.3 percent last year, even as overall seat capacity dropped 3.2 percent.

Domestic passengers fell 4.4 percent on 10.7 percent fewer seats, though domestic seat load factor rose 5.7 points to 87.6 percent.

International traffic grew 13.3 percent on 21.4 percent higher capacity, which pushed down the international seat load factor by 5.3 points to 74.2 percent.

“The softer year-on-year traffic in August reflects the usual lean travel season in the Philippines, particularly for domestic routes, while international passenger growth remained strong,” CEB Chief Executive Officer Mike Szucs said. 

“We see this as an expected and temporary dip, with traffic rebounding in the fourth quarter as peak travel season begins and aircraft availability improves,” he added.

Szucs also noted that the airline adjusted its domestic capacity in August to account for unscheduled engine removals, the flyadeal wet-lease, and planned maintenance to optimize operations and ramp up growth in the fourth quarter when demand is expected to peak.

For the first eight months of the year, CEB passengers climbed 15.2 percent to 18.1 million from 15.7 million last year. 

Domestic passengers rose 14.0 percent to 13.5 million, while international passengers increased 18.8 percent to 4.6 million. Year-to-date seat load factor averaged 85.2 percent, with total seat capacity up 15.1 percent to 21.3 million.

CEB currently operates 99 aircraft, serving 37 domestic and 26 international destinations — the widest network coverage in the country.