MANILA–The operator of top Philippine carrier Cebu Pacific Thursday reported its net profit plunged more than 85 percent for last year on huge foreign exchange losses from a weaker peso.
Cebu Air reported an after-tax net profit of 512 million pesos ($11.48 million) in the 12 months to December 2013, down from 3.57 billion pesos in the same period in 2012.
The operator swung into a net loss of 152 million pesos in the fourth quarter, from a net profit of 1.299 billion pesos in the comparative period a year earlier.
“Our outstanding debt, pre-delivery payments (of new aircraft), fuel purchases, leases and some maintenance expenses are pegged on the US dollar,” it said in a statement.
Cebu Air said the exchange rate, fuel, and competition in long-haul routes were key challenges.
It reported that full-year revenues rose 8.2 percent to 41.0 billion pesos last year, but the company suffered foreign exchange losses of 2.063 billion pesos, compared to a gain of 1.205 billion pesos in 2012.
It said Cebu Pacific retained its position as the largest domestic carrier in the Philippines with a 50.4 percent share.
Last month, Cebu Air agreed to acquire small domestic rival Tigerair Philippines for $15 million.