CEB 10-month traffic up on capacity strategy

Gokongwei-led Cebu Pacific (CEB) flew over 22 million passengers in the first ten months of the year, a 12.3 percent increase from 19.6 million a year earlier, driven by the airline’s capacity management efforts amid supply chain issues and weather disruptions.

In a Monday report, the budget airline said domestic traffic grew 10.8 percent year-on-year to 16.4 million passengers, while international passengers rose 17.0 percent to 5.6 million. 

The overall seat load factor (SLF) averaged 84.3 percent for the period, with total seat capacity increasing 12.5 percent to 26.1 million.

In October alone, CEB carried 2.1 million passengers, a marginal percent lower than last year. Seat load factor slipped to 79.3 percent from 80.5 percent, while capacity inched up by 0.6 percent.

Domestic passengers for the month fell 4.5 percent on 6.1 percent fewer seats, resulting in a domestic SLF of 82.5 percent.

International traffic climbed 10.7 percent to 22.2 percent higher capacity, pulling international SLF down by 7.4 percentage points to 71.4 percent.

“October reflected our active capacity management, as we navigated ongoing supply chain challenges, particularly those related to Pratt & Whitney engines, as well as weather-related disruptions," CEB Chief Financial Officer Mark Cezar said. 

"Capacity growth was intentionally moderated to ensure operational resilience ahead of the peak travel season," he added.

Cezar, however, noted that the airline continues to face similar headwinds in November, prompting further capacity moderation, but he said CEB expects to resume double-digit capacity growth by December and January.

From January to September, CEB nearly tripled its net income to P9.5 billion, up from P3.4 billion the previous year, driven by higher passenger volumes and improved operational efficiency. 

Its total revenue climbed 18 percent to P87.6 billion, supported by 20 million passengers flown, up 14 percent year-on-year, with a seat load factor of 84.8 percent.