Cebu Pacific has again flagged sluggish recovery for the China market, as it confirms that it has “redeployed” capacity to other parts of its network.
Citing tourism arrival figures, president and commercial chief Xander Lao says China “remains one of those countries…that have a very poor recovery ratio” post-pandemic, with tourist numbers 83% below 2019 levels.
“From our perspective, we have already redeployed some of the assets that were initially intended for China to other places within network,” Lao adds.
It is not the first time the airline has warned of a slow recovery from the China market: back in 2023, the low-cost operator pushed back the restart of several points in its Mainland China network, citing sluggish demand.
Lao was speaking at a briefing on 27 March, following the release of the airline’s annual results for 2024. For the year to 31 December 2024, the airline reported an operating profit of Ps9.2 billion ($160 million), up 7% year on year.
Total revenue rose 16% to Ps104.9 billion, with passenger revenues up 14% to Ps71.3 billion.
The airline saw an 18% rise in passenger numbers in 2024, to 24.5 million, with international passenger volumes leading the increase. Cebu Pacific added 27 new routes in 2024, including international flights from its non-Manila hubs.
Operating expenses were up 17% to Ps95.7 billion, as the airline expanded its network. The increase was led by higher airport and crew costs, as well as MRO costs with an enlarged fleet.
The airline disclosed an annual net profit of Ps5.4 billion, down 32%.
For the fourth quarter of 2024, Cebu Pacific posted an operating profit of Ps3.5 billion, up 43%. This came on the back of a 28% rise in revenues to Ps30.4 billion, outpacing the 26% increase in operating costs to Ps26.9 billion.
The airline also significantly grew its fleet in 2024, ending the year with 98 aircraft, 13 more than 2023.
