Cebu Air, Inc. (CEB) lost P12.046 billion for the first nine months of 2022, 45.2 percent lower than the P21.993 billion net loss it incurred in the same period last year.

CEB netted foreign exchange losses of P3.858 billion from the weakening of the Philippine peso against the US Dollar from P51 to P58.63 per US Dollar.

The company's interest expense and accretion expense from lease liability also shot up 32.8 percent to P2.448 billion due to the addition of 8 aircraft plus the sale and leaseback of seven A320 aircraft last year, offset by the return of four aircraft to the lessor.

Actually, CEB incurred a loss before income tax of P14.212 billion for the nine months ended September 30, 2022, 36.8 percent lower than the P22.485 billion loss before income tax posted in the comparative period.

CEB recorded revenues amounting to P37.533 billion for the nine months ended September 30, 2022, 310.2 percent higher than the P9.150 billion revenues generated in the same period last year.

The overall increase in revenues was primarily driven by significant increase in passenger volume, cargo services and flight activities as the COVID-19 restrictions already eased by March 2022.

Starting second quarter of 2022, most parts of the country have remained to be classified under the more relaxed Alert Level classification and this was retained until the third quarter of 2022.

As a result, the Group has restored almost the same level of its pre-pandemic system-wide capacity following the continuous ramp-up of its domestic and international routes.

Currently, the Group is expecting the level of demand to increase further for airline services not just within the Philippines but even abroad.

The positive development has not only allowed the Group to carry more passengers, but also boosted the Group’s cargo services.

Passenger revenues went up by P19.138 billion or 572.5 percent to P22.481 billion for the nine months ended September 30, 2022 from P3.343 billion earned in the nine months ended September 30, 2021.

This was mainly attributable to the 450.8 percent increase in passenger volume from 1.9 million to 10.4 million brought about by higher number of flights by 255.9 percent together with an 18.6 ppts increase in seat load factor from 55.8 percent to 74.4 percent.

An increase in average fares by 22.1 percent to P2,154 for the nine months ended September 30, 2022 from P1,764 for the same period last year also contributed to the increase in passenger revenues.

Cargo revenues increased by P1.351 billion or 31.7 percent to P5.615 billion for the nine months ended September 30, 2022 from P4.264 billion for the nine months ended September 30, 2021 primarily driven by the 19.1 percent increase in cargo kilograms flown from 83.0 million to 98.9 million, coupled with the increase in cargo yield by 10.6 percent to P56.79 for the nine months ended September 30, 2022 from P51.35 for the same period last year.

For the third quarter of 2022, CEB generated P16.9 billion in revenues up 419 percent from P3.2 billion in the same period last year, as its business segments registered some recovery.

Despite being a lean season, the continuous easing of travel requirements encouraged strong travel demand.

For the third quarter, CEB has flown over four million passengers, a 489 percent increase versus third quarter last year.

The airline’s seat load factor also improved to 74 percent from 57.5 percent last year.

This consequently resulted in the growth of passenger and ancillary businesses by 724 percent and 725 percent year-on-year, respectively.

Likewise, cargo business continued to sustain as it posted revenue of at least P2 billion, 41 percent higher than last year.

Operating expenses grew 112 percent year on year, as the airline faced significantly higher jet fuel prices, coupled with the peso depreciation.

CEB flew over 30,300 flights in the third quarter, 318 percent more than the same quarter last year. CEB ramped up its international network as it resumed flights to Sydney and Brunei.

Routes such as Cebu-Singapore and Cebu-Incheon also resumed, which signaled the restart of easier international travels for passengers in the Visayas and Mindanao.

For the rest of the year, the airline continues to expand its international footprint as it adds more flights to destinations such as Bali, Bangkok, Fukuoka, Hanoi, Ho Chi Minh, Hong Kong, Jakarta, Kuala Lumpur, Singapore, and Taipei.

“We are encouraged by some notable improvements in our numbers amidst the ongoing challenges related to fuel and foreign exchange rates," says Mark Cezar, CEB Chief Financial Officer.

"We remain cautiously optimistic that through our ongoing initiatives, coupled with a sustained increase in passenger traffic, we will soon see better days ahead.”