Cebu Air (CEB) investor relations material

Executive summary

• Q3 revenue was P27.664B, up 14% YoY, but higher fuel costs and FX losses contributed to a P6.911B net loss.

• Nine-month revenue rose 9.8% to P96.228B, while operating results swung to a P3.003B loss and net results to a P12.784B loss.

• Passenger growth, stronger yields and capacity discipline supported performance; management expects a full-year loss, with recovery anticipated in 2027.

Financial highlights

• Q3 revenue was P27.664B; EBITDA was P1.9B despite fuel expense rising 65% YoY.

• Q3 operating loss was P3.291B and net loss P6.911B, versus net income of P499M a year earlier; pre-tax core loss was P5.2B.

• Nine-month revenue was P96.228B; passenger revenue rose 9.5% to P65.314B, cargo 12.6% to P5.844B and ancillary 10.2% to P25.070B.

• Nine-month operating expenses rose 24.3% to P99.231B; fuel expense increased 62.4% to P39.1B, while EBITDA was P12.379B.

• Nine-month net loss was P12.784B, including a P5.025B net FX loss; parent-attributable loss was P12.842B and loss per share P21.82.

Outlook and guidance

• Healthy bookings and improving yields support expectations of stronger Q4 performance; PRASK indicators point to 18%-20% YoY growth in Q4 and Q1 2027.

• Full-year 2026 is expected to be loss-making; management expects financial recovery to begin in 2027.

• FY 2026 capacity growth is expected at ~6%; 2027 guidance is 5%-7%, with the fleet broadly unchanged at 102 aircraft.

• Aircraft-related 2027 CapEx is expected at ~P30B and gross CapEx at ~P34B; aircraft spending is expected to be financed.

• Jet-fuel forward prices were cited above $170/bbl; management expects volatility, with 2027 prices at $130-$140/bbl in H1 and below $120/bbl toward year-end.