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Cebu Pacific cut losses in 2022 as travel picked up

Cebu Pacific cut losses in 2022 as travel picked up


By Tyrone Jasper C. Piad, Inquirer Business

The operator of budget carrier Cebu Pacific cut its net losses by 44 percent last year, thanks to robust growth in its topline figures with the resurgence of passenger movement in airports amid the easing of border restrictions.

In a statement on Tuesday, Cebu Air Inc. reported that its net losses slowed down to P14 billion last year from P24.9 billion in 2021. Total revenues grew over threefold to P56.8 billion for the period, supported by passenger business soaring by 459 percent to P35.1 billion.

This segment was lifted by higher air travel demand for both domestic and international destinations. Last year, Cebu Pacific flew over 14.8 million domestic and international passengers, showing a 335-percent growth from 2021, amid the surge in air travel demand. It serviced over 108,300 flights and sold more than 19.7 million seats last year.

Among the key destinations were Japan, South Korea, Taiwan, Dubai and Sydney.

The topline figures, however, were dragged by high jet fuel prices and peso depreciation against the dollar, Cebu Pacific said.

Earnings before interest, tax, depreciation and amortization in 2022 ended in the green at P664 million, a turnaround from losses of P8.8 billion. Operating losses narrowed by about half to P11.4 billion for the period.

“Cebu Pacific is ready to move forward with optimism and confidence as we transition from recovery to growth mode,” Cebu Pacific CEO Mike Szucs said.

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Candice Iyog, Cebu Pacific vice president for marketing and customer experience, previously said the budget carrier was set to fully restore its 34 domestic and 25 international routes this month.

She is optimistic that international routes will drive the recovery this year, noting the easing travel requirements to several countries including Bangkok, Taiwan, South Korea, Japan, Australia, Hong Kong, Macau and China.

The company earmarked P42 billion in capital expenditure this year for mostly aircraft-related spending. The airline, currently operating a 77-unit fleet, is set to receive 10 more new units this year: three A320neo, three A321neo and four A330neo. It is also leasing additional five aircraft.