Cebu Air Inc., the listed operator of budget airline Cebu Pacific, booked a 5.4-percent decrease in earnings for the first half of the year despite heavier traffic in the second quarter.
The Gokongwei-led carrier’s financial filing showed that its net income in the January to June period ended at P3.55 billion from P3.75 billion in the same period last year.
Revenues jumped by 18.1 percent to P51.44 billion, driven by higher passenger revenues, which were up by nearly a fifth to P35.68 billion.
The cargo business alone saw a 32-percent in revenues with P2.63 billion due to an increase in volume.
Meanwhile, expenses leaped by 15.5 percent to P45.95 billion on higher costs in flying operations, particularly aviation fuel.
In the second quarter, Cebu Pacific said net income reached P1.3 billion, falling by 51 percent from P2.64 billion in the same quarter last year.
Cebu Pacific flew a record 6 million passengers during the quarter, up by 10 percent.
This was driven by more flights to high-traffic destinations like Cebu, Davao and General Santos, the company said. High demand for regional destinations—Hong Kong, Japan, Vietnam and Australia—likewise contributed to the growth.
Passenger revenues in the April to June period reached P18 billion, up by 13 percent. The cargo business, which flew 36 million kilograms of cargo, saw revenues surge by 59 percent to P1.4 billion.
“This has been a very important quarter for our airline, marked by significant achievements and crucial milestones,” Cebu Pacific CEO Michael Szucs said in a statement.
The budget carrier is set to finalize its mammoth P1.4-trillion purchase order—the largest such deal in Philippine aviation history—for 152 aircraft from global plane maker Airbus in the fourth quarter.
To make space in its balance sheet for the purchase, which will be funded through both debt and equity, Cebu Pacific plans to use part of its P20.66-billion paid-in capital to eliminate a P16.27-billion deficit. —Meg J. Adonis