Cebu Air, Inc.

Total revenue was PHP 33.3 billion, up 10% year on year. Passenger revenue rose 6% to PHP 22.5 billion, ancillary revenue increased 19% to PHP 9 billion, and cargo revenue grew 8% to PHP 1.8 billion. EBITDA improved 26% year on year to PHP 8.4 billion with EBITDA margin at 25%, while EBIT rose 54% to PHP 3 billion and pretax core income reached PHP 1.3 billion. Noncore FX losses of PHP 1.8 billion drove net loss to PHP 400 million versus PHP 466 million net income last year. On the balance sheet, net debt ended at PHP 170.6 billion and net debt-to-EBITDA was 5.1x; cash balance finished above PHP 23 billion. Guidance-wise, management now expects second-quarter seat growth of roughly 11% to 13%, first-half seat growth of about 10% to 12%, and full-year seat growth of roughly 9% to 11%, lower than prior guidance. CapEx guidance remains PHP 35 billion, with about PHP 32 billion aircraft-related.

Mike Szucs said the quarter showed Cebu Pacific’s long-term resilience, but he stressed that the current environment is unusually difficult because fuel has surged and pricing power is limited in a price-sensitive market. He emphasized the company’s structural advantages: a domestic-heavy network, a younger neo fleet, and the ability to redeploy aircraft to more resilient routes rather than park them. His tone was cautious on the near term but confident on the long-term Philippines aviation story, with continued investment in training, digital systems, and operational capability.

Trina Asuncion focused on the financial bridge from strong operating performance to a net loss, pointing to PHP 8.4 billion EBITDA, PHP 3 billion EBIT, and PHP 1.8 billion of noncore FX losses. She said cash generation remained solid, with PHP 11 billion in cash income, PHP 7.8 billion in operating cash inflow, and more than PHP 23 billion in cash at quarter-end. She also noted PHP 170.6 billion net debt, a 5.1x net debt-to-EBITDA ratio, PHP 35 billion CapEx guidance, and committed local bank lines of about PHP 15 billion, while stressing that cash preservation and delayed nonessential spend remain priorities.

Analysts pressed management on fuel surcharges, hedging, network cuts, profitability thresholds, and whether equity financing might be needed for the 2027 convertible maturity. Management said surcharges were raised in phases, but they would not fully offset higher fuel because many seats were already sold and demand is price sensitive; the team said pricing will keep being adjusted as bookings respond. On fuel, they said supply is secured through end-June, with 50,000 barrels hedged at about $120 per barrel for Q3, and on profitability they said network-wide breakeven is historically around $120 to $130 per barrel for P&L and $145 to $150 for cash flow. For the bond maturity next year, Mark said refinancing would likely be a capital markets transaction, possibly involving an equity-accounted instrument such as a perpetual.