• Full-year 2025 revenue rose 14 percent to P119.9 billion
• Net income surged 128 percent to P12.3 billion
• Fourth quarter net income climbed 40 percent to P2.8 billion
• Cargo revenue jumped 27 percent to P7.2 billion
• Industry faces fuel shock from Iran war heading into 2026
Cebu Pacific, the country's biggest carrier by fleet size and passenger volume, delivered record 2025 earnings but enters 2026 facing mounting external risks as a global fuel shock triggered by the Iran war threatens to squeeze airline margins and disrupt growth.
The Gokongwei family-led Cebu Air Inc., operator of Cebu Pacific, said full-year revenue rose 14 percent to P119.9 billion while net income more than doubled to P12.3 billion.
Earnings before interest, taxes, depreciation, and amortization climbed 21 percent to P30.9 billion, and operating income rose 25 percent to P11.5 billion.
The strong finish comes as airlines globally brace for a surge in jet fuel prices and supply disruptions tied to the Middle East conflict, which has already driven sharp cost increases and forced carriers to adjust fares and routes.
Management’s view
“Our full-year performance reflects the strength and discipline of our operating model and our ability to deliver consistent results in a dynamic market. Over the past year, we strengthened our foundations—improving reliability, expanding our network, and advancing our fleet,” said Michael Szucs, Cebu Pacific CEO.
“The larger, more fuel efficient A330NEOs and A321NEOs helped deliver improved seat economics network wide. Together with our focus on efficiency, this helped mitigate the increased expenses in maintenance, airports and fleet related costs due to grounded aircraft”, said Mark Cezar, Cebu Pacific chief financial officer.
The year before
The airline flew a record 26.9 million passengers in 2025, up 10 percent, supported by an 84 percent seat load factor. Passenger revenue rose 13 percent to P80.8 billion, while ancillary revenue increased 14 percent to P32 billion.
Cargo was a key growth driver, with revenue jumping 27 percent to P7.2 billion on higher volumes and expanded wide-body capacity.
In the fourth quarter, total revenue rose 6 percent to P32.3 billion. Net income climbed 40 percent to P2.8 billion, supported by P1.6 billion in non-core gains.
Under the surface
Fourth quarter passenger revenue rose 5 percent to P21.1 billion, while ancillary revenue increased 8 percent to P9.3 billion. Cargo revenue grew 19 percent to P2 billion.
Earnings before interest, taxes, depreciation, and amortization rose 11 percent to P8.7 billion, lifting margin to 27 percent. Operating income increased 6 percent to P3.7 billion, while pre-tax core income rose 13 percent to P1.9 billion.
For the full year, pre-tax core income surged 54 percent to P4.8 billion, pointing to stronger underlying profitability beyond one-off gains.
Balance sheet check
Capital spending reached P6.4 billion. Cebu Pacific ended 2025 with total assets of P264.7 billion, liabilities of P245.7 billion, and equity of P19 billion. Net debt stood at P169.7 billion.
30 years of operations
“Cebu Pacific continues to democratize air travel in the Philippines through low fares, network expansion, and digital self-service—carrying over 270 million passengers in 30 years and strengthening connectivity across the archipelago,” Szucs said.
“Investments in a young fleet and high-frequency routes have sustained its market leadership, delivering a compelling value proposition that is now integral to everyday life for millions of Filipinos,” he added.
What’s ahead
Cebu Pacific enters 2026 from a position of strength, but faces a more volatile operating backdrop as fuel prices surge and supply chains tighten amid the Iran war, pressuring margins across the airline sector.
While demand remains resilient, higher jet fuel costs, rerouting disruptions, and capacity constraints are expected to weigh on earnings, leaving airlines among the most exposed industries to prolonged energy shocks.
—Edited by Miguel R. Camus
