Cebu Air Inc. (PSE: CEB), the operator of Cebu Pacific, recorded P74.5 billion in total revenue for the nine months ending September 2024, marking an 11% increase from the same period last year. This growth was driven by a 13% increase in passenger volume to 17.5 million, achieving an average seat load factor of 84.9%.

Operating income for the period reached P5.7 billion, down 8% year-on-year, while net income fell by 33% to P3.4 billion. Margin pressure was attributed to increased expenses related to investments in additional aircraft and engines. CEB’s fleet expanded to 91 aircraft by the end of September, an increase of 10 aircraft from the previous year, and the airline also added 10 spare engines to enhance operational reliability.

Third-quarter revenue totaled P23.1 billion, a slight 1% decline due to a seasonality shift driven by the earlier start of the K-12 school year. The airline transported over six million passengers during the quarter, a 14% rise from the previous year, with a focus on competitive fare pricing that lowered average passenger fares by 15% to P2,577. Consequently, operating income for the quarter dropped to P202 million from P2.4 billion, with a net loss of P173 million, a reversal from the P1.3 billion net income in the same period last year.

CEB expanded its reach by deploying new aircraft to its regional hubs in Cebu, Clark, Davao, and Iloilo, and by increasing aircraft capacity in Manila. Additionally, the recent acquisition of AirSWIFT added El Nido to CEB’s network, further enhancing its service to key leisure destinations.

“We’re positioned to grow when others may not be able to. Although we’re experiencing short-term margin pressures, our investments in infrastructure allow us to expand our market presence,” said Cebu Pacific CFO Mark Cezar. “We expect to reach a domestic market share close to 60% by Q4, up from 52% pre-pandemic, strengthening both CEB’s network and the Philippine aviation sector.”