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Cebu Air's 2024 Net Income Declines by 68% Amid Rising Expenses

Cebu Air, Inc., the operator of budget airline Cebu Pacific, reported a significant 68.3% decrease in net income for 2024, amounting to P2.64 billion, down from P8.34 billion in 2023. This decline is primarily attributed to escalating operational expenses that have outpaced revenue growth.

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Revenue Growth Across Segments

Despite the downturn in net income, Cebu Air experienced a 15.4% increase in total revenues, reaching P98.19 billion in 2024, up from P85.09 billion the previous year. The breakdown of revenue growth is as follows:​

  • Passenger Revenue: Rose by 13.5% to P65.15 billion from P57.4 billion.​

  • Cargo Revenue: Increased to P5.54 billion.​

  • Ancillary Revenue: Expanded to P27.51 billion from P23.69 billion.​

Surge in Operational Expenses

The airline's total expenses surged to P89.84 billion in 2024, up from P77.72 billion in 2023, significantly impacting profitability. ​

Strategic Investments and Fleet Expansion

In October 2024, Cebu Pacific finalized a substantial P1.4-trillion ($24 billion) aircraft order with Airbus SE for up to 152 aircraft. Chief Financial Officer Mark Julius V. Cezar emphasized the company's optimism about the Philippine aviation sector, citing strategic investments in fleet and hubs as pivotal to growth. He expressed confidence in continuing rapid growth and enhancing operational and financial performance in 2025. ​

Passenger Traffic and Market Share

In 2024, Cebu Pacific transported 24.5 million passengers, marking an 18% increase from the previous year, with a seat load factor of 84.4%. The airline expanded its route network, securing a 54.1% share of the domestic market and 20.6% of the international market. ​

Market Response

At the local bourse, shares in Cebu Air closed 1.34% higher at P33.95 apiece. Cebu Air's financial performance in 2024 underscores the challenges posed by rising operational costs despite revenue growth across various segments. The company's strategic investments in fleet expansion reflect its commitment to strengthening its market position and achieving long-term growth in the aviation industry.​ 

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