Cebu Pacific off to good start in second half
The country’s largest carrier grew its passenger volume to more than 2.2 million in July, putting it on pace for a better second half as it tries to bounce back from its net loss.
Cebu Pacific, the Philippines' largest carrier, began the second half of the year with a promising start, according to its July traffic report. The airline reported a five percent increase in passenger volume, reaching 2.22 million passengers, up from 2.12 million a year ago. This growth was driven by the strength of the domestic market, as domestic traffic rose by nine percent to 1.73 million passengers, overcoming a decline of the same percentage in international volume, which fell to 485,000 passengers.
Overall, Cebu Pacific's passenger volume expanded by four percent to 16.72 million passengers in the seven months leading up to July. Domestic passenger count climbed by six percent to 12.6 million, while international traffic grew by one percent to 4.12 million. Cebu Pacific President and Chief Commercial Officer Alexander Lao had anticipated the decline in international volume, having reduced seat capacity for foreign flights by 17 percent in response to weaker demand.
Lao highlighted the airline's continued passenger growth in July, attributing it to a strong rebound in the domestic market, with resilient demand across the network. However, he noted that international traffic was lower than expected, resulting in stronger load factors. The airline, owned by the Gokongweis family, anticipates leaner demand in the third quarter and is leasing one of its Airbus A320neos to Vietnam Airlines until September 7.
As the holiday season approaches, Cebu Pacific plans to increase flight capacity again, adding Cebu flights to Ho Chi Minh by October 26, Shanghai by November 17, and Nagoya by November 19. The airline will also restore weekly flights between Clark and Hanoi, which was suspended earlier this year to control fuel consumption. Additionally, Cebu Pacific will reenter Xiamen from Manila on November 23, reinforcing its Chinese network.
With a lot of work ahead to address its P5.89-billion net loss in the first half, driven by a 23-percent jump in expenses due to soaring jet fuel prices, Cebu Pacific will rely on its industry-leading fleet of 102 aircraft and its extensive domestic network of 36 local destinations, along with 25 foreign cities in Asia, Australia, and the Middle East.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
