Cebu Air (CEB) Q2 2025 earnings summary

Executive summary

• Achieved strong revenue and profit growth in Q2 and H1 2025, driven by robust air travel demand, expanded network, and operational expansion, with 124 routes and 99 aircraft supporting over 3,300 weekly flights.

• Maintained market leadership with 57% domestic and 23% international share, supported by strategic investments in fleet and operational resilience.

• Completed acquisition of AirSWIFT, expanding network to El Nido and other key tourist destinations.

• Signed agreement to increase stake in 1Aviation to 60%, pending SEC approval, to enhance operational integration.

• Operational challenges from aircraft on ground (AOG) and supply chain issues were mitigated by compensation from engine suppliers and strategic partnerships.

Financial highlights

• Q2 2025 revenue rose 26% YoY to P32.9B; H1 2025 revenue up 23% YoY to P63.33B, with passenger, cargo, and ancillary revenues all posting double-digit growth.

• Q2 EBIT surged 110% YoY to P6.0B; H1 EBIT up 44% YoY to P7.92B.

• Q2 net income reached P8.5B (551% YoY increase); H1 net income at P8.97B (153% YoY increase).

• EBITDA margin improved to 32.6% in Q2 and 27.5% in H1.

• Cost per ASK declined 4% YoY in Q2 and 1% YoY in H1, aided by lower fuel prices; cost per ASK at PHP 3.07 (US¢5.38).

Outlook and guidance

• Positive financial outlook maintained, targeting 15% YoY seat growth for FY2025.

• Management expects continued strong demand for air travel and sufficient liquidity to meet obligations for at least the next 12 months.

• Ongoing fleet expansion with commitments for new aircraft and engines through 2033.

• Proactive seat growth management: reduced in Q3 for lean season, rising again in Q4.

• Favorable macroeconomic conditions expected, with stable PHP and lower fuel prices supporting margins.