Middle east conflict

AMID a volatile global landscape, Cebu Pacific reaffirmed its commitment to the Philippine aviation industry during the Davao Media and Stakeholders Update held on May 7 at Jack’s Ridge North.

Led by president and chief commercial officer Xander Lao and chief marketing & customer experience officer Candice Iyog, the airline reported a landmark financial performance for 2025 while detailing the strategic maneuvers required to navigate the current surge in international fuel prices.

​The airline reached a significant milestone in 2025, recording a total revenue of ₱119.9 billion, a 14% increase year-on-year. This record-breaking figure reflects the combined strength of the carrier’s passenger, cargo, and ancillary services.

Passenger volume also saw a robust climb, with nearly 27 million travelers taking to the skies in 2025, representing a 10% growth from the previous year. These figures underscored a period of substantial recovery and expansion for the Philippines’ leading budget carrier before the onset of recent geopolitical pressures.

​The narrative of growth has been tempered by the escalating conflict in the Middle East, which began in March and triggered a drastic spike in operational costs. Iyog reported that crude oil prices have surged by approximately 40% since the start of the hostilities, while jet fuel prices have more than doubled.

Specifically, jet fuel prices peaked at $230 per barrel in early March, a staggering leap from the $85 to $90 range maintained prior to the conflict. The airline issued a stark warning that such price levels are unsustainable for the broader aviation industry.

​In response to these external pressures, Cebu Pacific has implemented temporary network adjustments to protect its long-term viability. These measures include frequency reductions and the suspension of specific routes, including the Davao-Bangkok service, which will remain paused from April through October 2026. To mitigate the impact on the traveling public, affected passengers are being offered flexible options, including rebooking or the conversion of fares into a Travel Fund.

​Despite the current uncertainty, the airline maintains that it is uniquely positioned to weather the crisis due to its domestic-centric network and advanced fleet.

Currently, 80% of Cebu Pacific’s flights and 70% of its seat capacity are dedicated to domestic travel. Critically, 70% of these are trunk routes serving essential business and “Visiting Friends and Relatives” (VFR) segments, which have historically proven more resilient than pure leisure travel.

​Furthermore, the airline’s transition to a more efficient fleet provides a structural advantage. Approximately 72% of the current fleet consists of Airbus New Engine Option (NEO) aircraft. Iyog noted that these jets are 15% to 20% more fuel-efficient and offer 10% to 20% more seats per flight compared to previous models.

Even as costs rise, the airline continues to prioritize affordability, maintaining its low-fare model and recently launching promotions such as the Mother’s Day Piso Sale to stimulate travel.

​Beyond operational management, Cebu Pacific continues to invest in the future of the Filipino workforce. The airline recently inaugurated a new, state-of-the-art Training Academy in Parañaque City, equipped with Airbus A330 and ATR cabin mock-ups, as well as specialized slide and door trainers, which serves as a central hub for pilot and cabin crew development.

Iyog emphasized that this investment reflects the airline’s unwavering belief in the potential of the Philippines and its commitment to uplifting the standards of local aviation.

​Department of Tourism XI regional director Tanya Rabat-Tan expressed her gratitude for the transparency provided during the update, noting that air connectivity serves as the lifeblood of the regional economy.

While destinations provide the soul of tourism, Tan remarked that every new route and frequency brings the “warm bodies” essential to local businesses. She also highlighted the efforts of the Air Service Development Committee, a collaborative initiative between the city government, airport authorities, and the private sector aimed at supporting and growing existing routes.

​Reflecting on the balance between recent successes and current hurdles, Iyog concluded that while the strong performance of 2025 provides a solid foundation, the airline cannot afford complacency. The duration of the global energy crisis remains unpredictable, necessitating active and vigilant management.

However, with the continued cooperation of government stakeholders and the inherent resilience of the Filipino traveler, the aviation and tourism sectors remain poised to overcome these challenges and emerge stronger in the years to follow.