Cebu Air, Inc.2nd Quarter and 1st Half 2019

Results of Operations

August 14, 2019

Business Updates

14 Aug 2019

The information provided in this presentation is provided only for your reference. Such information has not been independently verified and, as such, is not guaranteed to be accurate nor complete. Neither Cebu Air, Inc. (“CEB” or the “Company”) nor any of its affiliates, shareholders, directors, employees, agents or advisers makes expressed or implied representations or warranties as to the accuracy or completeness of the information contained herein and neither of them shall accept any responsibility or liability (including any third party liability) for any loss or damage, whether or not arising from any error or omission in compiling such information or as a result of any party’s reliance or use of such information. The information and opinions in this presentation are subject to change without notice.

EBITDAR, EBITDA, EBITDAR Margin, EBIT and core net income are not measures of performance under the Philippine Financial Reporting Standards (“PFRS”), and should not be considered in isolation or as alternatives to net income as an indicator of CEB’s operating performance or to cash flow from operating, investing and financing activities as a measure of liquidity, or any other measures of performance under PFRS. Because there are various EBITDAR, EBITDA, EBITDAR Margin, EBIT and core net income calculation methods,CEB’s presentation of these measures may not be comparable to similarly titled measures used by other companies.

This presentation also contains certain “forward-looking statements.” These forward-looking statements include words or phrases such as CEB or its management “believes”, “expects”, “anticipates”, “intends”, “plans”, “foresees”, or other words or phrases of similar import. Similarly, statements that describe CEB’s objectives, plans or goals are also forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Such forward looking statements are made based on management’s current expectations or beliefs as well as assumptions made by, and information currently available to, management. There is no assurance that expectedevents will occur, that projections will be achieved, or that the Company and its management’s assumptions are correct.

Disclaimer

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2Q 2019 Snapshot

Low OTP, Flight

Cancellations

April May

Reopening of Boracay

June

New Aircraft Order

2Q2019

Overall, POSITIVE RESULTS

14 Aug 2019 4

• Revenue: P23.53B (+ 20.2% YOY)

• Pax yield: P3,735 ( +12.5% YOY)

• Cargo Vol: 49.6M ( +7.3% YOY)

• RASK: P3.19 (+6.1% YOY)

• Fleet: 72 (vs 67 2Q2018)

• Pax: 5.92M (+8.2% YOY)

• SLF: 90.1% (+0.3% pts YOY)

• RPK: 6.50B (+12.3% YOY)

• MOPS Price: $79.58/bbl (-8.9% YOY)

• PHPUSD Rate: P52.03 (-0.8% YOY)

• EBITDAR: P9.18B (+48.6% YOY)

• PT Core Income: P4.41B (+117.6%)

• Net income: P3.76B (+100.7%)

* Implemented PFSR16 for 2019

2Q 2019 Snapshot

Growth Revenue

Macroeconomic Drivers Profitability*

14 Aug 2019 5

Domestic Market

8,110

95,567

2Q2018 2Q2019

4.2M passengers, up 5.2% YOY

4.6M seats, up 4.0% YOY

Seat Load Factor of 92%

Network:• 37 destinations

• 67 routes

• 2,155 weekly flights

Market share of 52% = CPI of 1.04

14 Aug 2019

CRK Capacity Growth over 10x

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International Market

1.68M passengers, up 16.5% YOY

Seat Load Factor of 86%

1.96M seats, up 17.8% YOY

Network:• 26 destinations

• 39 routes

• 563 weekly flights

North Asean markets fuel growth

Manila to Osaka and Shanghai upgrade from A320 to A330

Cebu - Shanghai launch 6x/week

Clark - Narita launch 4x/week

• Short haul: 1.5M, up 16.2% yoy, SLF 85.6%

• Long haul: 149K, up 19.6% yoy, SLF 87.5%

14 Aug 2019 7

Cargo Update

2Q2019: 49.6M kg, up 7.3%

1H2019: 101.4M kg, up 4.1%

Cargo yield: P28/kg in 2Q2019

*Per CAB statistics

2,653

2,836

1H2018 1H2019

Cargo Revenues (in millions)

7%

97

101

1H2018 1H2019

Cargo Volume (kg in millions)

4%

ATR Freighters

• 1st ATR 72-500 in the world with Large Cargo Door (LCD) delivered

• 2nd ATR 72-500 conversion in process

• Cargo Loading System can carry up to 8 tons of cargo per uplift

Operation commencement:

Sept. 4, 2019

14 Aug 2019

Domestic Share: 47% in 1Q2019*

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Financial Results

1source: Published MOPS and PDS rates

Income Statement Highlights

2Q19 % YOY 1H19 % YOY

Total Revenue (Php M) 23,526 20.2% 44,703 18.2%

Passenger 17,673 20.8% 33,352 17.8%

Ancillary 4,459 24.8% 8,515 23.8%

Cargo 1,394 1.5% 2,836 6.9%

Average Yields

Average fare/pax 2,983 11.8% 2,974 8.8%

Ancillary/pax 753 15.5% 759 14.3%

Cargo yield / kg 28.08 -5.5% 27.97 2.7%

Revenue/ASK (RASK) 3.19 6.1% 3.09 5.6%

Cost/ASK (CASK) 2.50 -4.3% 2.48 -3.3%

CASK ex-fuel 1.61 -0.5% 1.61 0.5%

Income (PHP million)

EBITDAR 9,183 48.2% 17,229 43.4%

EBIT 5,027 100.2% 8,931 87.1%

Pre-tax Core Income 4,413 117.6% 7,706 90.6%

Net Income 3,758 100.7% 7,139 115.7%

Margins

EBITDAR Margin 39.0% 23.3% 38.5% 21.4%

EBIT Margin 21.4% 66.6% 20.0% 58.3%

Pre-tax Core Margin 18.8% 81.1% 17.2% 61.3%

Net Margin 16.0% 67.0% 16.0% 82.6%

2Q19 %YOY 1H19 %YOY

ASK (M) 7,383 13.3% 14,447 11.9%

Jet $/bbl 79.58 -8.9% 78.04 -6.7%

P/US$ 52.03 -0.8% 52.20 0.4%

Net income more than doubled in 1H19 amid yield increases, strong passenger growth and

successful cost management

14 Aug 2019

1H19 w/o PFRS

PFRS effect

%Δ

EBITDA 13,340 2,798 21.0%

EBIT 8,791 140 1.6%

Net Income 7,316 -178 -2.4%

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Balance Sheet Highlights

+ 2 A321NEOs (less 1 A320CEO)

PFRS 16 effect for 22 leased AC:

ROU asset P33,069Lease Liability P33,218Equity P -149

Dividends paid July 10, 2019

Gearing ratio of 1.33x equity enables us to leverage further

14 Aug 2019

In Millions of PHP 30-Jun-19 Dec. 31, 20182019 vs end

2018

Cash and cash equiv. 23,406 16,893 6,513Other current assets 7,907 9,052 -1,145Property & equipment 91,129 95,100 -3,971Right of Use Asset 33,069 - 33,069Others 7,112 8,347 -1,235TOTAL ASSETS 162,623 129,391 33,232

Current Debt 5,986 6,615 -629Noncurrent Debt 41,086 47,182 -6,096Current Lease 5,447 - 5,447Noncurrent Lease 27,771 - 27,771Dividends Payable 4,206 - 4,206Other liabilities 35,213 35,492 -279TOTAL LIABILITIES 119,709 89,289 30,420EQUITY 42,914 40,102 2,812

Cash to Sales Ratio 26.7% 23.0%Current Ratio 0.72 0.75Net debt to Equity* 1.33 0.92

*Net debt to Equity w/o PFRS 16 effect is 0.68

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Cash Flow Highlights

1.45 M shares bought back since January 2, 2019

14 Aug 2019

in Millions of PHP 1H19CASHFLOWS FROM OPERATING ACTIVITIESIncome after noncash adjustments 16,794Net changes in working capital 67Interest and taxes paid – net -1,332Net cash provided by operating activities 15,529CASHFLOWS FROM INVESTING ACTIVITIESAcquisition of PPE -1,735Proceeds from disposal 1,060Other noncurrent asset 712Net cash provided by investing activities 37CASHFLOWS FROM FINANCING ACTIVITIESRepayment of debt -5,966Payment of lease liability -2,590Treasury Stocks -121Net cash used in financing activities -8,677Net foreign exchange difference -376NET INCREASE IN CASH AND CASH EQUIVALENTS 6,513CASH AND CASH EQUIVALENTS, beginning 16,893CASH AND EQUIVALENTS, END 23,406

Free cash flow positive at P13.0B

2 A321NEOs and 1 spare engine delivered less 1 A320CEO sold

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2019 and Beyond

31% 24%10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

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3

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5

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2019 2018

Mill

ion

s

Bookings Capacity % Sold

3M Forward booking as of July 31 positive:

31% of our seats sold for the next 3 months, ahead of 24% same period LY

Fuel: with layered hedges to match bookings:

Jet fuel at $73.85/bbl* vs. $78.33/bbl end June19

Ongoing hedge ratios:

45% for balance 2019

20% - 25% for 2020-2021

CEB layers these hedges using swaps and collars with Jet and Brent as underlying

Forex: Natural hedges reduce exposure:

USD at Php 51.89* vs. Php 51.24 end June19

With our natural cash flow hedges and short term currency forwards, our monthly USD exposure is now c. 85% covered for balance of the year

Rates: Now at a downtrend:

3Mo Libor at 2.176%*, down c. 30bps from 2Q19

3Mo BVAL at 3.375%*, down c. 200bps from 2Q19

Php debt at 100% float, and USD debt at 85% float

*date of ref : August 9, 2019

Hong Kong under close monitoring:

At about 8% of our revenues and average of 4,000 pax flown daily, Hong Kong is indeed one of our major destinations

Current events start to manifest, with recent forwards booking trends for Nov-Dec. down mid 30% vs mid 40% last year:

Macroeconomic and Commercial OutlookMacroeconomic and Commercial Outlook

1414 Aug 2019

New Aircraft Order

• A330 : 460 seats

• A320NEO: 194 seats

• A321XLR: 240 seats

Accelerate Replacement of Existing A320 and A330 CEOs for:

More fuel-efficient

More eco-friendly

16 A330-900 NEO

10 A321 XLR (XtraLong Range)

5 A320 NEO

14 Aug 2019

Higher seat density

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Delivery

Number of Aircraft to be

DeliveredAircraft Delivery

Schedule

Existing Order:

A320NEO 4 2H2019

A321NEO 30 2H2019-2023

ATR 600 3 2020-2022

New Order:

A330NEO 16 2021-2024

A320NEO 5 2023-2024

A321XLR 10 2024-2026

Total Order 68

Total remaining aircraft order of 68, to replace existing Airbus A320 / A330 CEOs and ATR 72-500s

Estimated seat growth:5 year CAGR of 10-11%

Fleet Plan, end June 2019

14 Aug 2019

Baseline fleet of 85 aircraft by 2024, but with ability to grow further or moderate through lease market

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