CEBU Pacific is rebuilding its network after a fuel-price shock triggered by tensions in the Middle East, with direct flights from Davao to Hong Kong and Bangkok set to resume and more domestic flights to be added.
At the airline’s quarterly business review on Aug. 13 at Park Inn by Radisson Davao, Cebu Pacific Chief Marketing and Customer Experience Officer Candice Iyog said the airline’s fuel-efficient fleet has helped it recover from the disruption.
“The good news, another silver lining, is that 73 percent of our fleet has NEO engines. The NEO aircraft are actually 15 to 20 percent more fuel-efficient,” Iyog said.
The airline will also increase flights from Davao to Iloilo and Siargao as passenger demand recovers.
Iyog said demand began to pick up in June after the airline adjusted fares in response to higher fuel costs. She also cited reduced capacity among competitors as another factor supporting Cebu Pacific’s recovery.
“So we view the second quarter as a temporary external disruption. Let’s just hope it’s temporary. We have to think that way now and plan,” Iyog said.
Cebu Pacific to restore international routes
As part of its winter schedule, Cebu Pacific will resume direct Davao-Hong Kong flights four times a week on Mondays, Wednesdays, Fridays and Sundays starting Oct. 25.
The Davao-Bangkok (Don Mueang) route will resume Oct. 26, with flights three times a week on Mondays, Wednesdays and Fridays.
The additions will bring Cebu Pacific’s direct flights from Davao to 15, up from 13.
The airline will also increase Davao-Siargao flights from six to 10 times weekly and Davao-Iloilo flights from 10 to 14 times weekly.
“For a strong recovery for the winter season, or the fourth quarter, our focus is really making sure that whatever we do today still positions us well for the recovery when the war ends and when fuel prices normalize,” Iyog said.
Cebu Pacific is also holding a seat sale through Aug. 15, with base fares starting at ₱88 one-way for select domestic and international destinations. The travel period runs from Sept. 1 to Dec. 31, 2026, excluding fees and surcharges.
Iyog said Cebu Pacific remains confident in its long-term outlook, anchored by its cost leadership, market position and extensive network.
Airline weathers Q2 fuel shock
Iyog said the airline’s strong momentum earlier in the year was interrupted by a sharp fuel-price shock in the second quarter, when fuel costs more than doubled within weeks and squeezed margins.
Despite the pressure, passenger demand remained resilient.
Second-quarter revenue rose 7 percent from a year earlier to ₱35.2 billion, while passenger traffic reached 7 million.
In the first half of 2026, Cebu Pacific carried 14.5 million passengers, up 4 percent year over year, and generated ₱68.6 billion in revenue, an 8 percent increase.
The airline’s on-time performance also improved, reaching 84.2 percent in the second quarter from 81.4 percent in the first half.
Davao hub gains ground
Iyog said Cebu Pacific’s Davao hub handled nearly 2 million seats in the first half of the year and carried more than 1.4 million passengers, a 4 percent increase from a year earlier.
“This is aligned with our systemwide growth in terms of passengers. We operate more than 9,000 flights, so that’s a 6 percent growth year over year,” Iyog said.
She acknowledged that the first half of the year had been challenging but said the airline continued to strengthen its market position.
Cebu Pacific’s domestic market share reached 65 percent in June. Traffic also grew year over year despite the traditionally lean season, signaling a recovery in demand, Iyog said.
The airline continues to invest in fleet modernization, onboard connectivity through Starlink, and strategic wet-lease arrangements.
Iyog said Cebu Pacific expects the disruptions to prove temporary and sees room for further growth.
The airline expects to increase capacity at its Davao hub by 10 percent by year-end.
“So by the end of the year, we hope to operate 3.7 million seats to and from our Davao hub,” Iyog said.
Cebu Pacific has also begun restoring other international routes as it rebuilds its network for the winter season, including Manila-Xiamen, Cebu-Incheon, Cebu-Nagoya, Cebu-Narita, Cebu-Osaka, Cebu-Singapore and Cebu-Shanghai.
Business, tourism sectors welcome expansion
The Davao City Chamber of Commerce and Industry Inc. welcomed Cebu Pacific’s resumption of direct international flights and increased domestic frequencies, describing stronger air connectivity as an economic opportunity for the region.
“Every route open is a door to a market; every additional flight is an opportunity for a business meeting, an investment, a tourist arrival, and a new partnership for a Filipino enterprise to reach the world,” said Engr. Juan Carlos Quinto, DCCCII vice president for trade and commerce, who represented the chamber.
“The resumption of Cebu Pacific routes and increased flight frequencies serving Davao are not simply additional flights on a schedule. They are additional pathways for people, products, investments and ideas to move more efficiently for trade,” he said.
Quinto said stronger air connectivity would help business leaders meet partners, explore new markets, participate in trade missions and attend business events outside Davao.
“It positions Davao as a gateway to Mindanao, allowing our enterprises, particularly our MSMEs, to connect with wider domestic and international markets,” he said.
“For Davao, connectivity can be a catalyst for growth. It can bring more tourists to our hotels and restaurants, create greater opportunities for our MSMEs, strengthen our trade links, attract investors and make it easier for businesses to connect with partners across the country and beyond,” Quinto added.
Department of Tourism Davao Regional Director Tanya Rabat-Tan also thanked Cebu Pacific for its continued support for the city and region’s tourism industry.
“So I also want to take this moment to thank CebPac for your constant and unwavering support for our local tourism initiatives. We carry the confidence that comes from knowing we have a steadfast partner in the skies. We have weathered many ups and downs together, and by continuing to work hand in hand, we will only reach greater heights,” Rabat-Tan said. CEA
