JG Summit expects sustained 7% revenue growth in second half despite airline fuel pressures
JG Summit Holdings expects to maintain its 7% consolidated revenue growth in the second half of 2026, though its airline arm Cebu Air faces challenges from elevated jet fuel prices due to US-Iran tensions. The conglomerate also flagged shifts in consumer behaviour as inflation pushes shoppers toward
JG Summit Holdings, Inc. said on Wednesday that it expects to sustain its 7% consolidated revenue growth in the second half of the year, amid fuel cost challenges in its airline business.
“We expect roughly similar growth numbers in the second half,” JG Summit President and Chief Executive Officer (CEO) Lance Y. Gokongwei told reporters on the sidelines of an event. “There are some issues and pressures on the cost side, particularly those that are energy-related. The airline in particular is facing more challenges because of the issues with the Strait of Hormuz, which have caused the price of oil to be elevated.”
The United States and Iran have recently exchanged a series of military strikes on Tuesday. US President Donald Trump warned in a Truth Social post that an even bigger attack was “waiting in the wings” if retaliation from Iran continues. The six-month-old conflict between the US and Iran has disrupted global oil supply, including jet fuel, whose price has hovered above US$150 from the pre-conflict baseline of US$90 per barrel.
Cebu Air, Inc. (CEB), the air transportation arm of JG Summit, previously posted a P5.9-billion net loss in the first half of the year due to higher fleet-related financing costs and unrealised foreign exchange losses on foreign-denominated debt. Meanwhile, the airline’s revenue increased 8% to P68.6 billion as it carried 14.5 million passengers, up 4% from the same period last year. Cebu Air increased its domestic market share to 65% in June from 56% a year earlier. Its share of international capacity fell to 23% in the second quarter from 25% as the airline deliberately reduced its capacity. The airline’s average fares increased by 2% systemwide.
“All in all, we think the country is still growing, although we are facing a couple of risks. One is really the inflationary measures,” Mr. Gokongwei said.
The business tycoon also flagged shifts in consumer behaviour driven by inflation and weather-related disturbances. “I think what we’re seeing from the consumer is that there’s some marked behaviour. They’re spending their money on basics rather than on discretionary items. There’s a lot of disruption also driven by El Niño, by the bad weather. We have to be concerned about that,” he added.
Hard discount retailers have also seen growth as customers continue to seek more value-driven brands as prices of basic goods and food items increase. “For instance, switching from 3-in-1 coffee to straight instant coffee, you’re seeing that kind of behaviour or moving to lower-priced brands,” Mr. Gokongwei said. “One of the bright spots of Philippine retail is the growth of hard discounts. From starting up about three years ago, it continues to grow very well. I think it meets a need in the market again for very affordable prices for great value.” The Robinsons Retail Holdings Inc. (RRHI), one of the companies under the Gokongwei Group, owns a 23% minority stake in the hard discount supermarket chain O!Save.
