Cebu Air Inc., the operator of Gokongwei-led budget carrier Cebu Pacific, reported that its net income declined by 79 percent in the first three months of the year, driven by costs related to its fleet and network expansion.

In a disclosure to the Philippine Stock Exchange (PSE), Cebu Air said its net income reached ₱466 million in January to March 2025, a sharp decline from ₱2.24 billion recorded in the same period last year.

The airline attributed the reduction to its expansion initiative, ending March with a fleet of 99 aircraft, serving 63 destinations and 127 routes.

Over the past 12 months, it accepted 15 aircraft deliveries and 13 spare engines to support capacity growth and operational resilience amid global supply challenges. 

Operating expenses for the reference period reached ₱28.46 billion, higher by 26 percent compared to ₱22.66 billion incurred in the same period last year.

Despite the decline, the budget carrier posted a record-high revenue of ₱30.4 billion in the first quarter, up 20 percent compared to ₱25.303 billion.

This comes on the back of a 26-percent surge in passengers, with the airline carrying seven million in the first quarter versus 5.5 million during the same period the year before.

Cebu Air said this is despite the shift in Holy Week, which brings a substantial travel surge, from March to April this year. 

The increase in passenger traffic resulted in a 19 percent growth in passenger revenue from ₱17.83 billion to ₱21.16 billion.

Due to higher passenger volume, ancillary revenue expanded to ₱7.57 billion, a 22-percent hike from ₱6.2 billion.

Likewise, cargo revenues also soared by 35 percent to ₱1.69 billion, as the airline transported 51.6 million kilograms of cargo.

Cebu Air said it maintained a healthy earnings before interest, taxes, depreciation, and amortization (EBITDA) of ₱6.65 billion, which inched above ₱6.64 billion in the previous year. The operator said this translated to an EBITDA margin of 22 percent.

Cebu Pacific Chief Financial Officer Mark Cezar said the carrier “remains optimistic” on its financial outlook for the rest of the year.

“Underlying demand for affordable air travel remains strong, and we’ve made earlier strategic investments to ensure resilient operations,” said Cezar.

“Leveraging on these existing assets, CEB remains well positioned for sustainable growth, and improving profitability,” he added.