CEB 2025 income rises to P12.3B, suspends 5 routes until Oct. 2026 amid Middle East war

CEBU AIR, INC., the listed operator of budget airline Cebu Pacific (CEB), reported a more than twofold increase in its 2025 net income to P12.3 billion, driven by higher passenger revenues.

“Cebu Pacific’s 2025 financial results demonstrate the returns of strategic investments in capacity growth, fleet modernization and operational integrity. The larger, more fuel efficient A330NEOs and A321NEOs helped deliver improved seat economics network wide,” CEB Chief Financial Officer Mark Julius V. Cezar said in a media release on Monday.

Without disclosing comparative figures, Cebu Air said its operating income rose 25% to P11.5 billion. Including additional non-core gains, net income surged to P12.3 billion, more than double its 2024 level.

Cebu Pacific logged total revenue of P119.9 billion for 2025, up 14%. Passenger revenues increased 13% to P80.8 billion. The company carried 26.9 million passengers during the year, supported by an 84% seat load factor, which measures the percentage of occupied seats.

Ancillary revenues and cargo revenues reached P32 billion and P7.2 billion, respectively. The airline said it carried 215 million kilograms of cargo in 2025.

“Together with our focus on efficiency, this helped mitigate the increased expenses in maintenance, airports and fleet related costs due to grounded aircraft… Overall, the 2025 results underscore the strength of Cebu Pacific’s operating fundamentals and financial resilience,” Mr. Cezar said.

The company ended 2025 with a fleet of 100 aircraft, total assets of P264.7 billion, and total liabilities of P245.7 billion.

Cebu Air’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 21% to P30.9 billion. Its EBITDA margin expanded to 26%.

For the fourth quarter of 2025, Cebu Air reported operating income of P3.7 billion, up 6% from a year earlier. Revenue for the period rose 6% year on year to P32.3 billion.

During the quarter, the airline carried 6.9 million passengers, resulting in an average seat load factor of 82%, supported by improved average fares and ancillary yields amid strong holiday travel demand.

Passenger revenues for the three months ended December reached P21.1 billion, while ancillary and cargo revenues stood at P9.3 billion and P2 billion, respectively.

For 2026, Cebu Pacific said it will continue to modernize and expand its fleet, expecting the delivery of seven aircraft while retiring seven older units.

“This will retain its fleet size at 100 while increasing the proportion of seats on new generation aircraft. This shift meaningfully enhances the airline’s fuel efficiency, reduces unit costs, and supports sustainable growth,” it said.

NETWORK ADJUSTMENTS
At the same time, Cebu Pacific said it will recalibrate its network, including reducing flight frequencies and canceling selected routes due to the ongoing Middle East conflict.

The airline suspended five routes — Davao-Bangkok, Iloilo-Bangkok, Iloilo-Singapore, Singapore-Iloilo, and Clark-Hanoi-Clark — until October 2026.

It also reduced weekly services for selected domestic and international routes from April to October, including Cebu-Singapore, Singapore-Cebu, Manila-Jakarta, Jakarta-Manila, Manila-Kuala Lumpur, Kuala Lumpur-Manila, Manila-Melbourne-Manila, and Manila-Sydney-Manila.

At the local bourse on Monday, shares in Cebu Air rose by 10 centavos, or 0.34%, to close at P29.95 each. — Ashley Erika O. Jose