Cebu Pacific (CEB) is taking a cautious stance for the second quarter despite posting solid passenger growth in the first quarter to balance strong travel demand with rising fuel cost risks.

The Gokongwei-led budget airline said Wednesday that it flew over 2.5 million passengers in March, up 11.5 percent year-on-year, with demand supported by the start of school breaks and continued strength in international travel. 

Seat load factor (SLF) improved to 82.1 percent from 81.4 percent a year earlier, even as capacity expanded by 10.6 percent.

“For the second quarter, we are taking a cautious and measured approach amid a volatile fuel price environment. We have optimized flight frequencies where appropriate, focusing on routes with stronger demand,” CEB Chief Executive Officer Mike Szucs said. 

“Importantly, we remain committed to our core mission of connecting Filipinos by providing an affordable, convenient, and reliable service. With a strong financial foundation and a resilient operating model, Cebu Pacific is well-positioned to navigate this environment,” he added.

Based on the company’s latest report, domestic traffic last month rose 11.6 percent on 13.7 percent more seats, resulting in a domestic SLF of 82.5 percent.

International passenger traffic increased 11.3 percent, while capacity grew at a slower 2.1 percent, lifting international SLF by 6.7 percentage points to 81 percent.

For the first quarter, CEB carried more than 7.5 million passengers, an 8.4 percent increase from 7 million a year ago. 

Domestic passengers grew 7.9 percent to 5.6 million, while international passengers rose 9.8 percent to 1.9 million. Average SLF reached 83.7 percent, with total seat capacity up 10 percent to 9 million.

“We saw strong demand growth in March and throughout the first quarter, supported by the start of the school breaks and sustained momentum in our international segment. Load factors remained healthy across the network, reflecting disciplined capacity management,” Szucs said . 

CEB has flown over 280 million passengers since launching in 1996. It serves 36 domestic and 26 international destinations and operates a fleet of 101 aircraft, one of the youngest in the industry.