Cebu Air (CEB) Q2 2024 earnings summary

Executive summary

• Achieved record 6 million passengers systemwide in Q2 2024, the highest in company history.

• Maintained domestic market leadership with 54% share in June and expanded non-Manila hubs.

• Revenue for the six months ended June 30, 2024 rose 18.1% year-over-year to P51.44 billion, driven by higher passenger, cargo, and ancillary revenues.

• Operating income increased 45.9% to P5.49 billion, but net income declined 5.4% to P3.55 billion due to higher financing costs and foreign exchange losses.

• The group signed a binding MOU with Airbus for up to 152 aircraft, marking the largest aircraft order in Philippine aviation history.

Financial highlights

• Q2 2024 revenue reached ₱26.1B, up 15% year-over-year; H1 2024 revenue was ₱51.4B, up 18%.

• Passenger revenues grew 18.4% to P35.68 billion, with passenger volume up 12.1% and average fares up 5.7%.

• Cargo revenues surged 31.9% to P2.64 billion, and ancillary revenues rose 14.8% to P13.12 billion.

• Q2 EBIT was ₱2.8B, up 12% year-over-year; H1 EBIT was ₱5.5B, up 46%.

• Q2 net income was ₱1.3B, down 51% year-over-year; H1 net income was ₱3.5B, down 5%.

Outlook and guidance

• Fleet plan targets 15% seat growth in 2024 with net addition of 10 aircraft; over 20% seat growth planned for 2025.

• The purchase agreement for up to 152 Airbus aircraft is expected to be finalized in Q3 2024.

• The group expects to maintain a positive equity position for the rest of 2024, supported by strong travel demand and ongoing fleet expansion.

• Philippine economy expected to grow 6–6.5% annually through 2028, supporting air travel demand.

• New NAIA and Bulacan airports expected to ease capacity constraints.