Cebu Air (CEB) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 10% year-over-year to PHP 33.3 billion, with record 7.5 million passengers carried and an 83.7% seat load factor, despite operational disruptions and fuel price headwinds.

• Domestic market share increased to 57.5% and international to 23%, reinforcing leadership in both segments.

• Management is taking a cautious approach for the rest of 2026 due to fuel price volatility, geopolitical risks, and macroeconomic pressures, focusing on margin protection and disciplined capacity deployment.

• Investments in fleet modernization, operational excellence, and digital platform upgrades continue, including new training facilities and talent development.

• The group expanded its network and operational control through the acquisition of AirSWIFT and increased stake in 1Aviation.

Financial highlights

• Total revenue reached PHP 33.3 billion, up 10% year-over-year; passenger revenue rose 6.4% to PHP 22.5 billion, and ancillary revenue increased 19% to PHP 9 billion.

• EBITDA grew 26% year-over-year to PHP 8.4 billion, with an expanded EBITDA margin of 25.1%.

• Operating income (EBIT) rose 54% to PHP 3 billion, driving a 9% EBIT margin; pre-tax core income was PHP 1.3 billion, up nearly 300% year-over-year.

• Net loss of PHP 400 million, compared to a net income of PHP 466 million in Q1 2025, due to PHP 1.8 billion in non-core Forex losses from peso depreciation.

• Cash and cash equivalents increased to PHP 23.1 billion as of March 31, 2026.

Outlook and guidance

• Q2 and Q3 expected to be loss-making due to high fuel prices and seasonal demand patterns; Q4 may offer recovery if fuel prices decline.

• Full-year seat growth guidance revised down to 9%-11%, with growth in the second half dependent on fuel price trends.

• CapEx guidance at PHP 35 billion, with PHP 32 billion for aircraft; financing for deliveries is secured, and additional debt capacity is available if needed.

• Management expects sufficient liquidity for the next 12 months, supported by strong operating cash flows.

• Ongoing fleet expansion with commitments for 88 new aircraft and 10 engines through 2033.