Cebu Pacific flags supply chain, weather woes amid Q2 profit

Cebu Pacific remained in the black for a second consecutive quarter, though it has acknowledged the “significant operational headwinds” which has “tempered” its recovery and growth outlook. For the three months to 30 June, the low-cost operator posted an operating profit of Ps2.5b ($44.9m), reversing the Ps2.8b loss in the year-ago period. Revenue for the quarter rose 62% year on year to Ps22.7b as Cebu Pacific carried 29% more passengers compared to 2022. Still, the carrier notes that revenue and traffic fell below pre-pandemic levels. Revenue, for instance, was 4% down from the same quarter in pre-pandemic 2019, while passenger load factor - at 86% this year - was lower compared to the 90% in 2019. “Overall improvement in passenger business was seen year on year especially as most international destinations have eased travel restrictions since last year. Passengers, however, were still 8% below pre-pandemic levels, as short haul international travel remained well below 2019,” the airline states. It adds that it was impacted by supply chain woes, as well as weather-related issues, including a series of typhoons and tropical storms to hit the Philippines during the April-June period. Operating costs for the quarter rose 20% to Ps20.2b, driven by an increase in fleet-related and fuel costs. The carrier posted a net profit of Ps2.7b, reversing the Ps1.9b net loss in the year-ago period. This is the second quarter this year that Cebu Pacific has been profitable. For the January-March quarter, it posted an operating profit of around Ps1.2b – its first profit since the start of the pandemic more than three years ago. <br/>