Cebu Pacific swings to net loss in H1 2026 amid fuel price shock

Budget carrier Cebu Pacific swung to a net loss in the first half of 2026 amid higher foreign exchange costs due to global fuel price volatility amid the Middle East crisis.

In a disclosure to the Philippine Stock Exchange on Thursday, Cebu Pacific reported a net loss of P5.9 billion during the period, a reversal from P8.9 billion net income a year ago.

The Gokongwei-led carrier cited the impact of foreign exchange translation losses, which weight on its bottom line despite an 8% increase in revenues to P68.6 billion.

Revenue growth was driven by higher passenger revenue grew to P47.2 billion, up 7%, while ancillary and cargo revenue increased 11% and 13%, respectively.

The airline said it carried nearly 14.5 million passengers during the first half, up 4% year-on-year, reflecting continued demand across its domestic and international networks, which grew 5% and 2%, respectively.

Citing internal estimates, Cebu Pacific said it domestic market share expanded to 60% in the second quarter from 55% a year ago.

In the second quarter alone, the airline reported total revenue of P35.2 billion, up 7% year- on-year, as demand remained resilient amid calibrated fare adjustments across the
network.

However, it said that with fuel prices driving fuel expense to more than double year-on-year, coupled with foreign exchange losses, it reported a second quarter operating loss of P2.7 billion and a net loss of P5.5 billion.

"The second quarter was one of the most challenging operating environments we have faced post-pandemic, driven by an unprecedented spike in fuel prices," said CEO Michael Szucs.

"Despite these external pressures, demand for affordable air travel remained resilient, revenue continued to grow, and we further strengthened our market leadership. As industry capacity becomes more rational and market conditions improve, we remain confident in Cebu Pacific's long-term growth opportunity and our ability to deliver sustainable value for our shareholders.” — BM, GMA News