Cebu Pacific operator cuts losses in Q2

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Metro Manila (CNN Philippines, August 11) — The operator of budget carrier Cebu Pacific slashed its net loss in the second quarter as revenues registered a steep increase following the relaxation of travel restrictions.

In a statement, Cebu Air said it trimmed its net loss to ₱1.9 billion from the ₱6.5 billion a year earlier.

The company, meanwhile, saw its revenues surge by more than threefold to ₱13.97 billion against the ₱3.2 billion generated in the same period last year.

It attributed the revenue growth to the "solid recovery" of its passenger and ancillary businesses, which climbed 644% and 572%, respectively.

The Gokongwei-led firm said its performance in the period was buoyed by the domestic air travel market--with the number of passengers flown surging to 562% while flights grew 350%.

Cebu Air's cargo business also saw growth of 15% to ₱1.7 billion.

On the other hand, the rise in jet fuel prices pushed its operating expenses to balloon by 86% to ₱16.8 billion.

"Amidst the risks posed by expensive jet fuel, peso depreciation and interest rate hikes, Cebu Air remains cautiously optimistic that we can turn the tide soon as domestic demand looks robust and international borders continue to reopen," said Cebu Pacific Chief Finance Officer Mark Cezar.