Cebu Pacific has again flagged the slow recovery in the Chinese market as it confirms it has the ability to “relocate” against the rest of the network.
Citing tourism arrival numbers, President and Commercial Prime Minister Zander Rao said China “still remains one of these countries…the recovery rate is very low”, with tourist numbers 83% below the 2019 level.
“From our perspective, we have already relocated some of the assets that were intended elsewhere in the network for China,” adds Rao.
It's not the first time an airline has warned of a slow recovery from the Chinese market. In 2023, low-cost operators pushed back the reboots of several points in mainland China's network, slowing demand.
Laos was speaking at a briefing on March 27 following the release of the 2024 airline annual results. Up until December 31, 2024, airlines reported operating profit of 9.2 billion ($160 million), up 7% from the previous year.
Total revenues rose 16% to 104.9 billion ps, while passenger revenues rose 14% to 71.3 billion.
The airline saw an 18% increase in passenger numbers in 2024 to 24.5 million, and international passenger volume increased. Cebu Pacific added 27 new routes in 2024, including international flights from hubs outside Manila.
Operating expenses increased by 17% to PS97 billion as airlines expanded their networks. This increase was led by increased airport and crew costs, as well as MRO costs due to the expanded fleet.
The airline has disclosed an annual net profit of 5.4 billion ps., down 32%.
In the fourth quarter of 2024, Cebu Pacific increased its operating profit of 3.5 billion PS by 43%. This marked a 28% increase in revenue to 300 billion PS, surpassing a 26% increase in operating costs to PS26.9 billion.
The airline also expanded its fleet significantly in 2024, ending the year with 98 aircraft over 2023.
