Cebu Air (CEB) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 7% year-over-year to PHP 35.2 billion, and H1 revenue increased 8.3% to PHP 68.6 billion, driven by higher fares, ancillary yields, and resilient demand despite unprecedented fuel price spikes and currency headwinds.

• Passenger volumes increased 4% in H1 to over 14 million, with domestic market share expanding to 65% in June as competitors reduced capacity.

• Extraordinary fuel price shock and peso depreciation in Q2 led to a net loss of PHP 5.5 billion for the quarter and PHP 5.9 billion for H1, reversing prior profitability.

• Strategic fare increases, capacity adjustments, and ongoing fleet modernization (73% NEO aircraft) helped partially offset higher costs.

• Acquired AirSWIFT and increased stake in 1Aviation to 60%, now consolidated as a subsidiary.

Financial highlights

• Q2 revenue: PHP 35.2 billion (+7% YoY); H1 revenue: PHP 68.6 billion (+8.3% YoY); passenger revenue up 7% YoY to PHP 47.2 billion; ancillary revenue up 11% to PHP 17.4 billion; cargo revenue up 13% to PHP 4 billion.

• Q2 EBITDA: PHP 2.1 billion (down 80% YoY); Q2 operating loss: PHP 2.7 billion; Q2 net loss: PHP 5.5 billion; H1 EBITDA: PHP 10.5 billion (down 40% YoY); H1 net loss: PHP 5.9 billion.

• Operating expenses surged 23.2% to PHP 68.28 billion in H1, mainly due to a 130% increase in fuel expense and increased flight operations.

• Operating income plummeted 96.4% to PHP 288 million; EBITDA margin dropped to 15.3% from 27.5% YoY.

• Cash balance at end-H1: nearly PHP 15 billion, with net cash inflows from operations of PHP 4 billion.

Outlook and guidance

• Recovery underway with improving booking trends and easing external headwinds; management expects sufficient liquidity for at least 12 months.

• Full-year capacity growth expected at 8–10%, with five more aircraft deliveries in H2 2026; NEO fleet to reach 80% of jet fleet by year-end.

• Aircraft-related capex to decline to PHP 25 billion in 2027, funded by a mix of debt and sale-leasebacks.

• Focus shifting toward margin expansion, balance sheet strengthening, and shareholder returns as growth moderates.

• Ongoing fleet expansion with significant aircraft and engine purchase commitments through 2033.