CEB banks on domestic demand as overseas traffic slips

Cebu Pacific (CEB) is relying on stronger domestic travel demand to sustain passenger growth as elevated fuel prices force the budget carrier to scale back international capacity and adjust its operations.

The airline reported on Thursday that it carried 1.91 million passengers in September, up 4.4 percent from 1.83 million a year earlier, driven largely by increased traffic on domestic routes.

Domestic passenger volume climbed 7.4 percent to 1.48 million from 1.38 million, supported by a 6.2-percent increase in seat capacity.

International traffic, however, fell 5.1 percent to 424,000 passengers from 446,000 as the airline reduced overseas seat capacity by 11.5 percent amid higher fuel costs.

Despite the reduction, CEB improved its overall seat load factor, a measure of how many available seats are filled, to 83.5 percent from 81.1 percent a year earlier.

Domestic flights recorded an 84.7-percent load factor, while international flights posted 79.3 percent, up 5.4 percentage points as the airline adjusted capacity to match demand.

“Despite September traditionally being a lean travel month in the Philippines, we saw encouraging demand across our domestic network, particularly on key trunk routes. Internationally, we continued to manage capacity selectively in response to elevated fuel prices,” CEB President and Chief Commercial Officer Xander Lao said.

From January to September, CEB flew 20.77 million passengers, a 4.1-percent increase from 19.95 million in the same period last year.

Domestic passengers rose 5.5 percent to 15.7 million, while international traffic remained nearly unchanged at 5.07 million.

However, the airline's year-to-date seat load factor declined to 82.1 percent from 84.8 percent as total seat capacity expanded 7.6 percent to 25.3 million.

“As we approach the holiday season, we will maintain a disciplined approach to matching capacity with demand, while retaining the flexibility to adjust our network in response to fuel prices and evolving market conditions. Our focus remains on providing affordable and reliable travel,” Lao said.

CEB currently operates 102 aircraft, serving 36 domestic and 25 international destinations.

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