Q3 2024 Cebu Air Inc Earnings Call Transcript
Key Points
- Cebu Air Inc (CEBUY) announced a historic aircraft order with Airbus for up to 152 A321neo aircraft, valued at $24 billion, marking the largest in Philippine aviation history.
- The acquisition of AirSWIFT from the Ayala Group expands Cebu Air Inc (CEBUY)'s network to include El Nido, enhancing travel opportunities for passengers.
- Cebu Air Inc (CEBUY) plans to increase its fleet from 100 aircraft in 2025 to between 126 and 208 by 2035, with an annual growth rate of 2% to 15%.
- The company reported a 14% increase in passengers flown year-on-year, resulting in an 84.2% seat load factor, up by 0.5 percentage points.
- Cebu Air Inc (CEBUY) achieved a significant 40% growth in cargo revenue, supported by expanded capacity from new wide-body aircraft.
- Cebu Air Inc (CEBUY) experienced a 1% decline in total revenues for Q3 2024 compared to the same period last year, with passenger revenues down by 3%.
- Operational challenges included Typhoon Carina and a global software update disruption, leading to over 350 flight cancellations.
- The extended lean season due to the earlier start of the school year impacted travel demand more significantly than anticipated.
- EBITDA for the quarter declined by 24% year-on-year, with operating income reaching only PHP200 million.
- Increased fleet and operational costs, along with new route openings, have pressured margins this year.
Good afternoon, everyone. Thank you for being with us today. A few weeks back, we proudly announced CEB's momentous aircraft order with Airbus. I'm delighted to provide updates on this important milestone. The third quarter of the year is typically the leanest period for the airline industry in the Philippines.
This year, the early start of the school calendar has further added to the challenge. Nevertheless, we remain committed to our growth journey and continue to adapt to various operational challenges. Today, we will share how we are proactively addressing these hurdles in ensuring our sustained progress.
In addition, we are excited to share a noteworthy expansion in our network as we are now able to offer El Nido, one of the most coveted travel destinations in the Philippines following the acquisition of AirSWIFT from the Ayala Group. This strategic move enhances our portfolio and opens new travel opportunities for our passengers.
I know you're eager to hear more about these developments. So
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