Cebu Pacific more than doubles profit

MANILA, Philippines — Cebu Air Inc. has more than doubled its profit in the first half as its expanded operations fueled higher revenues.

The operator of low cost carrier Cebu Pacific said in a stock exchange filing yesterday that its net income soared by 115.7 percent to P7.14 billion in the first semester from P3.31 billion in the same period last year.

Cebu Pacific generated revenues amounting to P44.70 billion from January to June, 18.2 percent more than the P37.84 billion a year ago.

Passenger revenues accounted for the bulk of the company’s revenues at P33.35 billion, up 17.8 percent year-on-year.

Cebu Pacific said the increase in passenger revenues was mainly due to higher average fares as well as improved passenger volume with the addition of a bigger A321 aircraft to its fleet.

Its average fares grew by 8.8 percent to P2,974 in the first half from P2,734 during the same period last year.

Cargo revenues, meanwhile, rose by nearly seven percent year-on-year to P2.87 billion following the increase in both volume and yield of cargo transported in the first six months.

Cebu Pacific incurred 8.2 percent higher operating expenses in the first half due to its expanded operations, growth in seat capacity from the acquisition of new aircraft, and the weakening of the Philippine peso against the US dollar. 

Fuel expense was also slightly higher due to the 8.3 percent increase in fuel volume.

As of end-June, Cebu Pacific operates an extensive route network serving 67 domestic routes and 39 international routes with a total of 2,718 scheduled weekly flights.

The airline operates a fleet of 72 aircraft which comprises of 33 Airbus A320, seven Airbus A321 CEO, one Airbus A320 NEO, two Airbus A321 NEO, eight Airbus A330, eight ATR 72-500, and 13 ATR 72-600.