Cebu Pacific (CEB) reported a net loss of P5.9 billion in the first half of the year, as higher fuel costs and foreign-exchange losses weighed on earnings despite continued revenue growth and resilient passenger demand.

The company said Thursday it generated P68.6 billion in revenue during the six months, up 8 percent from a year earlier. 

Passenger revenue rose 7 percent to P47.2 billion, while ancillary and cargo revenue increased 11 percent and 13 percent, respectively.

CEB posted EBITDA of P10.5 billion and operating income of P300 million in the first half. Including financing costs, its core pre-tax loss amounted to P3.4 billion. Foreign exchange translation losses brought the airline’s net loss to P5.9 billion.

The airline carried nearly 14.5 million passengers during the period, a 4 percent increase from a year earlier due to continued demand across its domestic and international networks. 

CEB also said its estimated domestic market share expanded to 60 percent in the second quarter from 55 percent a year ago. 

On-time performance improved to 84.2 percent, placing the carrier among the most punctual airlines in the Asia-Pacific region, according to aviation analytics firm Cirium.

For the second quarter alone, CEB posted a net loss of P5.5 billion and an operating loss of P2.7 billion, as fuel expenses more than doubled year on year alongside foreign exchange losses.

Second-quarter revenue rose 7 percent to P35.2 billion, with passenger revenue increasing 7 percent to P24.7 billion. Ancillary revenue grew 4 percent, while cargo revenue climbed 18 percent.

“The second quarter was one of the most challenging operating environments we have faced post-pandemic, driven by an unprecedented spike in fuel prices,” CEB Chief Executive Officer Michael Szucs said.

“Despite these external pressures, demand for affordable air travel remained resilient, revenue continued to grow, and we further strengthened our market leadership. As industry capacity becomes more rational and market conditions improve, we remain confident in Cebu Pacific’s long-term growth opportunity and our ability to deliver sustainable value for our shareholders.”