Cebu Pacific Air (Capa) and Philippine Airlines were among the five most profitable airlines in Southeast Asia during the first nine months of 2015, a period marked by more “rational” capacity and low fuel prices, think tank Capa Center for Aviation said in a report this week.
Data compiled by Capa showed that Cebu Pacific booked a profit of $156 million while PAL earned $124 million during the January to September period. They were just behind Malaysia AirAsia, with a profit $220 million, and Singapore Airlines, which earned $203 million.
The gains came as challenges were highlighted for Southeast Asian carriers, which have moved to cut the overcapacity seen in 2014 that was manly led by low-cost carriers, the report said.
Capa said Cebu Pacific and PAL were also among 10 of 19 profitable Southeast Asian airlines during the period, meaning most were still in the red.
“A majority of airlines remain in the red despite the low fuel prices, an indication that market conditions remain relatively challenging,” Capa said.
Among those that reported earnings, Capa said several carriers were “only marginally profitable” and the figures were relatively lower when compared to most other regions.
It said the region’s airline sector would account for less than a fifth of the total profit for Asia Pacific and about 2 percent of the $50 billion in operating profit of airlines globally, Capa added.