CEBU PACIFIC, operated by Cebu Air, Inc. (CEB), said it expects fuel price volatility to persist in the approaching months but is hoping for alleviating prices by the third quarter, whilst it reviews its passenger growth goal for the 12 months.
“Hopefully, as we get into the third quarter, the fuel prices could have come back. It’s a really volatile situation by way of trying to know what’s occurring. Now, after all, (jet fuel’s) gone lower. But we’re a really solid airline coming off very strong financial results. We’ve got a whole lot of financial resilience,” Cebu Air Chief Executive Officer Michael B. Szücs told reporters on the sidelines of the budget carrier’s training academy inauguration on Monday.
Mr. Szücs said the airline is reassessing its outlook amid changing conditions.
“I feel we’ve got to review (our passenger volume goal). I mean, this 12 months, loads has modified. So, it’s difficult to predict exactly what the passenger numbers will likely be, but actually we were on course to grow by type of 10% plus again this 12 months,” he said.
Fuel costs remain the fundamental challenge, with the corporate citing disruptions linked to the conflict within the Middle East.
“Without delay, it’s a really difficult time for the aviation industry, especially within the Asia-Pacific region. We import most of our fuel from the Middle East, so the war has severely impacted the supply and the costs of fuel,” Cebu Air Chairman Lance Y. Gokongwei said.
The airline said it has secured enough jet fuel supply to support operations until June and is working to obtain additional supply.
“We expect we’ve got got an adequate supply of fuel. The true challenge is on the value because we’ve got seen some extremely elevated prices. We hope that when we get into June, July, August, prices will come off,” Mr. Szücs said.
In response to the International Air Transport Association, jet fuel prices fell 6.7% week on week to $184.63 per barrel as of April 17, but surged 105.1% on a yearly basis.
The corporate said it has been adjusting operations to administer costs and demand.
“I feel we’re thoroughly set. I feel we’ve got to control the long run and the prospects of the country. On a day-to-day basis, we could have to perhaps do some tactical adjustments on the schedule,” Mr. Szücs said.
Since February, Cebu Pacific has recalibrated its network through flight frequency reductions and temporary cancellations.
Cebu Pacific said it’s going to proceed assessing demand, particularly throughout the low season, noting that demand levels in April and May remain unchanged.
The airline initially expected to shut 2026 with 30 million passengers, up from 27 million in 2025. In the primary quarter, passenger traffic rose by 8.4% to 7.54 million, driven by higher domestic passenger volumes.
Fuel surcharges have also increased, with the Civil Aviation Board raising rates to Level 19 for April 16-30, the very best since 2022.
At this level, fuel surcharges range from P627 to P1,834 per way for domestic flights, and from P2,070.77 to P15,397.15 for international flights, depending on distance.
For 2025, Cebu Pacific reported a greater than twofold increase in net income to P12.3 billion, driven by higher passenger revenues.
“And again, I feel the purpose I’d prefer to make is we see this as a difficult variety of months now and within the months ahead, but we see the long-term potential each within the country,” Mr. Szücs said.
The airline inaugurated on Monday a training academy for pilots and cabin crew in Parañaque City.
The 1,685-square-meter facility includes aircraft door trainers, cabin mock-ups, slide trainers, and classrooms for scenario-based training.
Cebu Pacific currently operates 35 domestic and 26 international destinations across Asia, Australia, and the Middle East.
Cebu Air shares closed at P33 on Monday, up 1.85%. — Ashley Erika O. Jose