CEB in red despite quadruple Q1 core jump

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.