HONG KONG, March 23 (Reuters) - Philippine budget

carrier Cebu Pacific on Monday said it raised all-in

average fares by as much as 26% and may cut capacity in the

third quarter as soaring jet fuel costs triggered by the

U.S.-Israeli war on Iran threaten to erode profitability.

Here are some details:

* Cebu Pacific management told an earnings call that all-in

average fares for March through May were running roughly 20% to

26% higher compared with early March levels, saying the airline

had to make adjustments "in light of this fuel spike."

* The carrier said it had secured jet fuel supply through

the end of April and was working to lock in requirements for May

and beyond, adding there were no imminent flight cancellations.

* Management said the airline was fully unhedged against

fuel price movements, noting that no Philippine carrier

currently holds fuel hedges. It said it would revisit hedging

strategies once prices normalised, targeting a jet fuel price

range of between $80 and $90 per barrel before rebuilding hedge

layers.

* Despite the fare increases, management said second-quarter

demand remained resilient on both domestic and international

routes. It flagged a potential shift in travel patterns, with

some passengers opting for intra-Asian destinations rather than

longer-haul travel to Europe.

* Capacity growth in the first quarter came in ahead of

expectations at around 10% year-on-year and the carrier said it

was seeking to maintain growth of roughly 12% to 15% through the

second quarter. It said its Dubai service had been suspended

until mid-April, while its Riyadh operations were continuing.

* Management said it would reassess third-quarter capacity

depending on the duration of the fuel price shock and the

availability of jet fuel supply.

* Management said capital expenditure for the year remained

at 35 billion Philippine pesos ($579.8 million), with 95% to 96%

tied to aircraft deliveries and financing largely in place, but

noted that the volatile environment may require a review of the

capex plan.