Michael Szucs
Chief Executive Officer

[Audio Gap] Good day, everyone. Cebu Pacific began 2026 on a strong note, delivering solid growth in the first quarter. Total revenue reached PHP 33.3 billion, up 10% year-on-year, supported by the tail end of holiday peak period and early summer travel.

We carried over 7.5 million passengers, up 8%, supported by a 10% increase in seat capacity. Seat load factor remained robust at 83.7% with improved passenger yields, reflecting a resilient travel demand environment and effective commercial execution.

Cebu Pacific also continued to outperform the broader Philippine aviation industry. The airline grew its domestic market share to almost 58% and its international market share to 23%, reinforcing its position as the country's leading carrier across both segments. CEB's scale and leadership advantages enable us to drive lower unit costs, optimize network and capacity deployment and strengthen bargaining power with suppliers, supporting competitive pricing and operational resilience.

Looking ahead, the operating environment in the second quarter has become more complex. Escalating tensions in the Middle East have sharply increased volatility in fuel prices, our largest cost component and created headwinds for our long-haul operations, while also introducing uncertainty around the overall demand outlook. Amid this volatile environment, we have started taking a more cautious and measured approach with a clear focus on protecting margins and capitalizing on resilient demand. We have adjusted our fares and optimized flight frequencies where appropriate, alongside selective flight cancellations, focusing on routes with high demand.