Cebu Pacific Reports P12.84 Billion Loss Amid Rising Costs

Budget carrier Cebu Pacific has reported a net loss of P12.84 billion for the first nine months of 2026, a stark contrast to the P9.46 billion profit recorded in the same period of 2025. This downturn is attributed to soaring fuel prices and significant foreign exchange losses, as detailed in the airline's financial disclosure.

In the third quarter alone, Cebu Pacific faced a net loss of P6.93 billion, reversing a profit of P485.55 million from the previous year. Despite these losses, the airline's consolidated revenues increased by 9.8% year-on-year to P96.23 billion, buoyed by a rise in passenger volume and ancillary services.

Passenger revenues rose by 9.5% to P65.31 billion, while cargo revenues grew by 12.6% to P5.84 billion. However, operating expenses surged by 24.3% to P99.23 billion, leading to an operating loss of about P3.3 billion for the period.

“The third quarter remained a challenging period, as elevated fuel prices, a weaker peso, and broader macroeconomic pressures continued to affect our operations”Michael B. Szücs, CEO

Fuel expenses were a major contributor to these losses, increasing by 62.4% to P39.1 billion, which accounted for about 39.4% of total operating expenses. The airline cited disruptions in the Middle East as a key factor in the rising jet fuel prices. Additionally, foreign exchange losses quadrupled to P5.03 billion as the Philippine peso weakened against major currencies, including the US dollar and Japanese yen.

Cebu Pacific's Chief Executive Officer Michael B. Szücs acknowledged the challenges posed by elevated fuel prices and broader macroeconomic pressures but said the airline was encouraged by a return to passenger growth. He also noted that forward bookings for the holiday season and the first quarter of 2027 are looking healthy, which could bolster the airline's revenue outlook.

“The airline was encouraged by a return to passenger growth and noted that forward bookings for the holiday season and the first quarter of 2027 are looking healthy”Michael B. Szücs, CEO

The airline carried nearly 21 million passengers during the nine-month period, reflecting a 4% increase from the previous year, with domestic traffic accounting for 15.7 million passengers and international traffic reaching 5.1 million. Cebu Pacific has captured a 63% share of the domestic market in the third quarter, indicating its strong competitive position.

Despite the current financial setbacks, Cebu Pacific is continuing its fleet expansion program, with plans to introduce seven new narrowbody aircraft in 2027. The airline aims to surpass the 26.9 million passengers it carried in 2025, supported by anticipated travel demand during the holiday season.

As of the latest trading session, shares of Cebu Air, the parent company of Cebu Pacific, fell by 2.98% to close at P24.40 per share, reflecting investor concerns about the airline's financial performance amidst rising operational costs.