Cebu Air Inc (PSE: CEB), the Philippines’ leading carrier, generated Php 26.1 billion in revenue in the second quarter, a 15% increase from the previous year.

CEB carried six million passengers in the second quarter, the highest passenger count in a single quarter in its history. This is 10% higher from the previous year fueled by the summer traffic from April to May, the school break in June, and additional frequencies in high-traffic destinations such as Cebu, Davao, and General Santos. Strong demand for regional destinations such as Hong Kong, Japan, Vietnam, and Australia also contributed to the growth.

With this, the passenger business generated almost P18 billion in revenues, 13% higher year on year, while ancillary business generated close to P7 billion, 16% higher year-on-year. CEB’s cargo business also showed a notable improvement, as it flew close to 36 million kilos of cargo in the second quarter, 39% higher than same period last year. This is on the back of over 38 thousand flights flown for the quarter, 5% higher year on year. With this, CEB’s cargo business generated over P1.4 billion in revenue, up 59% on the previous year. Operating income improved to P2.8 billion, 12% higher than same period last year. After considering financing costs, and other non-core gains and losses, CEB’s net Income for the second quarter posted at P1.3 billion.

On August 2, 2024, the Securities and Exchange Commission approved CEB’s quasi-reorganization through deficit reclassification. This equity restructuring removes CEB’s retained deficit as of end 2023 through a counterpart application of its capital surplus. Combined with increased profitability and improving capital efficiency this will accelerate the potential for future shareholder returns and distributions.

“This has been a very important quarter for our airline, marked by significant achievements and crucial milestones. We’ve set new highs in terms of passengers flown, finalized our quasi-reorganization, and made the historic order of up to 152 aircraft from Airbus,” said CEB Chief Executive Officer Michael Szucs.

“This substantive commitment, through the new aircraft order, aligns CEB’s ability to grow with the robust economic story in the Philippines and its ongoing investment in infrastructure.”