Cebu Pacific (CEB), the Philippines’ leading carrier and a member of the Gokongwei Group, reported a sharp turnaround in 2023 with a net income of P7.9 billion from a net loss of P14 billion in 2022 as it benefited from a full year of revenge travel.

In a disclosure to the Philippine Stock Exchange (PSE), the firm said it generated P90.6 billion in revenue for 2023, a 60 percent jump from the previous year. Passenger business led this steep recovery with P62.5 billion in revenue, 78 percent higher year-on-year. 

This is on the back of over 20 million passengers and over 140,000 flights in 2023, 41 percent and 30 percent higher year on year, respectively. The seat load factor improved to 84 percent, almost nine percentage points higher year-on-year.

Total operating expenses amounted to P82 billion, 20 percent higher year-on-year due to higher fuel and fleet-related costs. 

CEB took 18 aircraft deliveries throughout 2023, increasing its fleet to improve its operational resiliency while sustaining capacity growth. Also embedded in its expenses are digitalization and other efforts to support its customer first initiatives.

Given these, CEB recorded an operating income of P8.6 billion, a significant turnaround from losses incurred in 2022. Earnings before interest, taxes, depreciation, and amortization (EBITDA) steeply increased to P21.8 billion from P664 million in 2022.

The fourth quarter marked Cebu Pacific’s strongest in terms of revenue, as it generated P23.7 billion, 23 percent higher year-on-year. Operating income in the fourth quarter was at P2.4 billion, a reversal from the operating loss of P232 million in the same quarter in 2022. 

The net income for the fourth quarter was recorded at P2.9 billion, a turnaround from the P1.9 billion net loss incurred in the same period in 2022.

“Moving forward, we are optimistic that Cebu Pacific’s solid 2023 financial results will set the foundation for a stronger financial performance in 2024,” said Cebu Pacific Chief Finance Officer Mark Cezar.