Cebu Pacific (CEB) posted a net loss of P400 million in the first quarter of the year, reversing a P466 million net income a year earlier due to non-core foreign exchange losses related to quarter-end peso depreciation.

The budget airline reported on Wednesday that foreign exchange losses reached P1.8 billion during the quarter, which offset gains from higher operating income and revenue growth.

Core income before tax surged 300 percent to P1.3 billion from P325 million a year ago, while total revenue climbed 10 percent year-on-year to P33.3 billion, driven by higher passenger demand and a 10 percent increase in seat capacity across domestic and international routes.

“Our first-quarter performance reflects the strength of our network and disciplined capacity deployment,” CEB Chief Executive Officer Mike Szucs said.

“As we navigate a more volatile operating environment amid higher fuel prices, we are taking a more cautious and measured approach focused on margin protection, prudent capacity deployment, and liquidity preservation," he added. 

Despite the headwinds, Szucs said its scale, fleet efficiency, and strong domestic network would help cushion near-term uncertainty and support long-term growth.

As of the end of March, CEB said it carried 7.5 million passengers, up 8 percent from a year earlier, while maintaining a seat load factor of 83.7 percent.

Passenger revenue increased 6 percent to P22.5 billion, while ancillary revenue rose 19 percent to P9 billion due to higher ancillary yields. Cargo revenue grew 8 percent year-on-year to P1.8 billion, supported by higher widebody capacity.

EBITDA increased 26 percent year-on-year to P8.4 billion, while operating income rose 54 percent to P3 billion. The airline said cost discipline and operating efficiencies partially offset higher operating costs associated with fleet and capacity expansion.

CEB ended the quarter with 101 aircraft in its fleet and more than P23 billion in cash.

The airline serves 35 domestic and 26 international destinations across Asia, Australia, and the Middle East.