Cebu Pacific Reports Q1 2022 Results

(17 May 2022, 09:39 +07)  In the first quarter of 2022, Cebu Pacific flew 16,521 flights and 2.05 million passengers, increases of 128% and 272% on Q1 2021 respectively.

Cargo operations during the quarter also sustained growth, rising 36% to 34.2 million kgs from last year.

Revenues of P6.71 billion in the first quarter, 148% higher than the same period last year, were driven by passenger operations which grew 256% to P3.16 billion from P887 million in the same period last year.

Cebu Pacific A320 reg: RP-C4104. Picture by Steven Howard of TravelNewsAsia.com

Ancillary and cargo revenues, increased 239% and 40% year-on-year, respectively.

Operating expenses grew 26% year-on-year mainly due to higher fuel expenses resulting from the increase in jet fuel prices. Nonetheless, operating loss narrowed 22% to P5.34 billion in the first quarter from P6.82 billion in the same quarter last year.

Cebu Pacific also incurred P2.52 billion in non-core losses, primarily due to forex translation of dollar denominated loans and unrealized mark to market losses from the derivative value of its convertible bonds. As a result, the company recorded a net loss of P7.61 billion, 4% higher than P7.30 billion in the first quarter of last year.

The airline generated net cash flows from operations of P1.55 billion, largely driven by an increase in unearned transportation revenue due to higher bookings. At the end of March 2022, Cebu Pacific’s cash and cash equivalents were P18.42 billion.

For the remainder of 2022, Cebu Pacific is optimistic about a better business outlook driven by domestic recovery and re-openings of international destinations, but remains cautious of the risks presented by increasing jet fuel prices and interest rates, as well as the depreciation of the Philippine Peso vs US Dollar.