Cebu Pacific sees softer demand heading into third quarter

CEBU AIR, INC., the operator of budget carrier Cebu Pacific, said it is taking a cautious approach to capacity and pricing as it enters the seasonally slower third quarter after passenger traffic declined in May.

The airline carried 2.40 million passengers in May, down 1.6% from 2.44 million a year earlier, reflecting softer demand in both its domestic and international markets.

“As we enter the seasonally softer third quarter, we are taking a disciplined approach to capacity and revenue management to match demand, support healthy load factors, and maintain affordable fares while managing elevated operating costs, particularly fuel,” Cebu Air President and Chief Commercial Officer Alexander G. Lao said in a statement on Monday.

Domestic passenger traffic fell 0.21% to 1.82 million in May from 1.83 million a year earlier, while international passenger volume declined 4.5% to 575,000 from 602,000.

Mr. Lao said the airline has seen encouraging signs following recent pricing adjustments.

“Following our pricing adjustments, we saw stronger booking momentum and improved seat load factors compared to April, demonstrating the market’s responsiveness to calibrated fare levels,” he said.

Despite the monthly decline, Cebu Pacific’s passenger traffic remained higher during the first five months of the year.

The airline flew 12.21 million passengers from January to May, up 4.6% from 11.67 million in the same period last year.

Of the total, domestic passenger traffic reached 9.09 million, while international passenger volume stood at 3.12 million.

During the five-month period, Cebu Pacific’s seat load factor declined to 80.7% from 85% a year earlier as capacity expansion outpaced passenger growth.

Total seat capacity increased 10.2% to 15.13 million seats from 13.73 million.

Cebu Pacific currently operates a fleet of 102 aircraft serving 35 domestic and 25 international destinations.

Separately, the airline said all AirSWIFT flights will be operated by its regional unit CebGo as part of the integration of the boutique carrier into the Cebu Pacific group.

The airline said there would be no changes to AirSWIFT’s flight schedules and services during the transition.

Cebu Pacific acquired AirSWIFT in 2024 through a P1.75-billion share purchase agreement with ALI Capital Corp.

AirSWIFT currently operates flights between Clark and El Nido, as well as routes connecting El Nido with Boracay, Bohol, Cebu, and Coron. — Ashley Erika O. Jose