C00663-2023

SECURITIES AND EXCHANGE COMMISSIONSEC FORM 17-C

CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.2(c) THEREUNDER

1. Date of Report (Date of earliest event reported)
Jan 26, 2023
2. SEC Identification Number
154675
3. BIR Tax Identification No.
948-229-000
4. Exact name of issuer as specified in its charter
CEBU AIR, INC.
5. Province, country or other jurisdiction of incorporation
Cebu City, Philippines
6. Industry Classification Code(SEC Use Only)
7. Address of principal office
Level 4 Unit 4030-4031, Robinsons Galleria Cebu, General Maxilom Avenue cor. Sergio Osmena Boulevard, Cebu City Postal Code 6000
8. Issuer's telephone number, including area code
(632) 8802-7000
9. Former name or former address, if changed since last report
N/A
10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA
Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
Common 617,640,711
Convertible Preferred 314,044,357
11. Indicate the item numbers reported herein
9

The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.

Cebu Air, Inc.CEB

PSE Disclosure Form 4-13 - Clarification of News Reports References: SRC Rule 17 (SEC Form 17-C) and
Section 4.4 of the Revised Disclosure Rules

Subject of the Disclosure

Cebu Air, Inc. ("CEB") responds to the Philippine Stock Exchange's (the “Exchange”) query made on 26 January 2023
Source Business Mirror (Online Edition)
Subject of News Report Cebu Pacific expects swing to profitability in January-March
Date of Publication Jan 26, 2023
Clarification of News Report

We refer to your correspondence dated January 26, 2023 with respect to the news article entitled “Cebu Pacific expects swing to profitability in January-March” posted in BusinessWorld (Online Edition) on January 26, 2023.  

The article reported in part that:

"Budget carrier Cebu Pacific said it could pivot back to profitability in the first quarter as it expects to restore 100 percent pre-pandemic capacity by March. 

‘By first quarter, we aim and we hope to be profitable. We are looking at the first quarter to be profitable,’ said Cebu Air Inc. President and Chief Commercial Officer Xander Lao

. . . . . 

The airline has set aside P42 billion in capital expenditure (capex) this year, bulk of which will be spent for additional aircraft. ’We are looking at P42 billion capex for 2023. Obviously, most of that would be aircraft related,’ added Lao. 

Three Airbus 320 NEOs, three A321 NEOs and four A330 NEOs are up for delivery this year. These will augment increasing demand for travel. 
. . . . 

Lao also said losses incurred from the NAIA fiasco last January 1 stood at “roughly P100 million,” but “it won’t impact our recovery.”

“What’s important is that we can recover the operations quickly…It’s just one day. Obviously, it’s not a great experience for those travelling January 2 onwards,” he said, while noting that normal operations resumed on January 3.

 . . . .” 

Cebu Air, Inc. ("CEB") would like to provide further information and clarification as follows.

First, Mr. Alexander G. Lao stated that CEB hopes for a full year net income, with note that first quarter (particularly January) is traditionally strong for airlines throughout the world.  For the first quarter of 2023, CEB aims to be profitable but it depends on a lot of factors, including fuel prices which have come up again. Another factor Mr. Lao noted is the strengthening of the peso as against the end of 2022 which will affect CEB’s profitability. 

Second, CEB confirms that it has set aside PHP 42Billion capex for 2023, most of which will used for aircraft-related expenses. 

Third, CEB would like to clarify that it indeed provided details of its losses to the Civil Aeronautics Board (“CAB”) pertaining to the January 1 NAIA incident but Mr. Alexander G. Lao estimates losses from all Philippine carriers (not just CEB) is at around PHP100M.
Other Relevant Information

CEB files this disclosure in compliance with the correspondence of the Exchange dated 26 January 2023 whereby the Exchange requested clarification and/or confirmation of the above-quoted news article and request Cebu Air, Inc. (“CEB”) to disclose other relevant information not reported in the foregoing news article, if any.
Filed on behalf by:
Name Anne Romadine Tieng
Designation Vice-President for Legal Affairs and Corporate Secretary