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, reversing from a profit, amid higher foreign exchange costs due to global fuel price volatility stemming from the Middle East crisis. The airline disclosed this in a filing with the Philippine Stock Exchange on Thursday, reporting a net loss of P5.9 billion for the period, a sharp turnaround from a P8.9 billion net income a year ago. The Gokongwei-led carrier cited the impact of foreign exchange translation losses, which weighed on its bottom line despite an 8% increase in revenues to P68.6 billion. Revenue growth was primarily driven by a 7% increase in passenger revenue to P47.2 billion, while ancillary and cargo revenue also saw significant gains, increasing by 11% and 13%, respectively. Cebu Pacific reported carrying nearly 14.5 million passengers during the first half, a 4% increase year-on-year. This reflects continued demand across its domestic and international networks, which grew by 5% and 2%, respectively. The airline also noted that its domestic market share expanded to an estimated 60% in the second quarter, up from 55% a year ago. In the second quarter alone, the airline posted total revenues of P35.2 billion, up 7% year-on-year. However, fuel expenses more than doubled year-on-year, compounded by foreign exchange losses, leading to 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.” The Philippine aviation sector has been experiencing growth driven by the recovery of domestic demand and the resumption of international travel. However, fluctuating fuel prices pose a significant challenge to airline profitability. Low-cost carriers, in particular, are under pressure to maintain price competitiveness while managing rising costs. This situation is also intertwined with broader inflationary pressures in the Philippine economy, potentially impacting consumer purchasing power.