Cebu Air (CEB) Q4 2024 earnings summary

Executive summary

• Achieved record passenger growth in 2024, flying 24.5 million passengers (up 18% YoY), with strong gains in both domestic and international segments.

• Expanded network to 123 routes and over 3,800 weekly flights, adding new destinations and acquiring AirSWIFT.

• Secured leading domestic (54% market share) and international (22.5% Q4, 20.6% FY) positions.

• Enhanced operational resiliency with 22 aircraft and 13 engine deliveries, improving customer experience.

• Achieved strong Q4 and full-year 2024 results, driven by network expansion, fleet growth, and increased capacity.

Financial highlights

• Q4 2024 revenue reached PHP 30.4 billion, up 28% YoY; full-year revenue was PHP 104.9 billion (+16% YoY), driven by 18% passenger and 32% cargo growth.

• Q4 EBIT/operating income was PHP 3.5 billion (+43% YoY); full-year EBIT/operating income PHP 9.2 billion (+7% YoY).

• Net income for 2024 was PHP 5.4 billion, down 32% YoY due to higher costs and lower tax benefits.

• Operating expenses rose 17% YoY, mainly from higher fuel, airport, crew, and maintenance costs.

• Net debt rose to PHP 156.2 billion (+31% YoY); equity improved to PHP 10 billion from PHP 4.8 billion.

Outlook and guidance

• 2025 seat capacity projected to grow up to 25% YoY, with net addition of 2 aircraft and 7 new deliveries.

• January–February 2025 passenger traffic up 30% YoY, with higher load factors.

• CAPEX for 2025 expected to halve to PHP 30–35 billion, with similar levels through 2028; next spike in 2029.

• Optimism driven by lower fuel prices, stronger peso, and steady interest rates, though risks remain from geopolitical and economic factors.

• Expectation to approach pre-COVID margins in 2025.