More passengers, cheaper fuel boost Cebu Pac income

MANILA, Philippines - Publicly listed low cost carrier Cebu Air Inc. (Cebu Pacific), the airline arm of taipan John L. Gokongwei Jr., recorded a 20.2-percent jump in net income in the first quarter of the year on the back of higher passenger volume, cheaper fuel costs, and increase in average fares.

In its quarterly report submitted to the Philippine Stock Exchange (PSE), Cebu Pacific said its net income amounted to P1.16 billion from January to March this year or P198 million higher than the previous year’s P962.4 million.

Higher passenger and cargo volumes also pushed the airline’s revenues by 12.9 percent to P10.54 billion in the first quarter of the year from P9.34 billion in the same quarter last year.

Data showed that passenger revenues rose 13.6 percent to P8.17 billion in the first quarter from P7.19 billion a year ago.

Cebu Pacific reported that volume of passengers inched up by 4.9 percent to 3.5 million in the first quarter from 3.4 million in the same quarter last year while number of flights increased by 4.8 percent as the number of aircraft went up to 43 from 40.

On the other hand, the airline said average fares increased by 8.3 percent to P2,312 per passenger from P2,134.

On the other hand, cargo revenues climbed 3.5 percent to P570.648 million from P551.151 million due to the increase in the volume and average freight charges of cargo transported in 2013.

Likewise, Cebu Pacific said ancillary revenues including online bookings went up 12.9 percent to P1.8 billion from P1.598 billion.

The airline reported that its operating expenses inched up by 3.4 percent to P9.22 billion in the first quarter of the year from P8.92 billion last year due to the increase in the number of seats.

Cebu Pacific’s flying operations expenses grew two percent to P5.237 billion from P5.132 billion as aviation fuel expenses rose 3.4 percent to P4.638 billion from P4.485 billion as a result of the increased number of flights year on year.

The rise in aviation fuel expenses, however, was partially offset by the reduction in aviation fuel prices to $128.5 per barrel in the first quarter of the year from $131.8 in the same quarter last year.

The airline reported that its repairs and maintenance expenses remained steady at P916.2 million from P915.85 million amid the increase in the number of flights that was offset in part by the appreciation of the peso to P40.70 per $1 from P43.03.