Low-cost carrier Cebu Pacific is banking on the steady decline in jet fuel prices to propel passenger volume growth in the second half of the year, as it nears the halfway mark of its 30-million annual passenger target.

In a disclosure to the Philippine Stock Exchange (PSE), Cebu Pacific reported carrying 14.5 million passengers from January to June, up 4.3 percent from 13.91 million in the same period last year.

The airline’s domestic passenger volume rose 4.9 percent to 10.87 million by the end of June from 10.36 million a year ago. The international segment also posted gains, growing 2.4 percent to 3.63 million passengers from 3.55 million.

While Cebu Pacific increased its seat capacity by nearly 10 percent to 17.86 million during the six-month period, its seat load factor—the percentage of seats booked against available capacity—declined from 85.4 percent to 81.2 percent.

Still, the airline remains optimistic about its full-year growth prospects after recovering from two consecutive months of passenger declines with a stronger June performance.

Cebu Pacific flew 2.29 million passengers in June, a 2.5 percent increase from the 2.23 million recorded in the same month last year. By comparison, April and May volume had posted year-on-year declines of 0.7 percent and 1.3 percent, respectively.

“June marked a return to year-on-year passenger growth, driven by the continued strength of our domestic network even as we entered the traditional lean travel season,” said Cebu Pacific President and Chief Commercial Officer Alexander Lao.

Domestic passenger traffic for June rose six percent to 1.78 million from 1.68 million last year. On the other hand, international passenger volume fell 8.6 percent to 510,000 from 558,000.

“While international volumes remained below last year, this largely reflected previous capacity adjustments,” Lao explained.

For the second half of the year, Lao expects passenger demand to improve alongside falling jet fuel prices, which are driving down airline fuel surcharges.

The Civil Aeronautics Board (CAB) recently lowered the fuel surcharge imposed by airlines by one notch to Level 8 for the July 16 to 31 period. Under this tier, passengers will pay an additional ₱253 to ₱787 for domestic trips, and between ₱835.05 and ₱6,208.98 for international flights.

According to data monitored by the International Air Transport Association (IATA), global jet fuel prices averaged around $127.06 per barrel as of July 10. This is a significant drop from the spikes of over $200 per barrel seen at the height of the Middle East conflicts.

Lao added that cooling inflation will also encourage travelers to book trips sooner rather than later. Data from the Philippine Statistics Authority (PSA) showed that the country's headline inflation rate slowed to 1.4 percent in June, down from 1.8 percent in May.

"With fuel prices having eased significantly and consumer sentiment improving, our market position continues to strengthen, and we expect a further recovery in operating performance through the second half of the year," Lao said.

For the full year, Cebu Pacific aims to grow its passenger traffic by nearly 12 percent to 30 million, up from its record high of 26.88 million in 2025.

To sustain passenger momentum, the airline also announced a partnership with Starlink—the satellite internet unit of Elon Musk’s SpaceX—to bring high-speed inflight Wi-Fi to its fleet starting next year (2027).