Cebu Air Jan-June profit jumps 116%
The country’s largest budget airline saw profit more than double in the first semester of 2019 as passenger volume and ticket prices went up.
Cebu Air Inc., operator of Cebu Pacific, said in a stock exchange filing on Tuesday that net income from January to June this year hit P7.14 billion, up almost 116 percent compared to the same period in 2018.
The first semester covers the peak summer travel season. Cebu Air said volume went up 8.3 percent to 11.21 million passengers, boosting overall revenue to P44.7 billion, up 18 percent.
Cebu Air also benefited from an 8.8-percent increase in average fares to P2,974 in the six-month period. Late last year, the Civil Aeronautics Board allowed local carriers to impose a fuel surcharge to help operators recover some of their fuel expenses.
Cebu Air also saw growth across its cargo and ancillary, or nonticket, sales.
Cargo revenue rose 6.9 percent to P2.84 billion while ancillary revenue went up 23.8 percent to P8.51 billion.
Operating expenses rose 8.2 percent to P35.77 billion, mainly as the company acquired more planes and ramped up operations.
Flying operations rose 4.6 percent to P15.2 billion. Cebu Air cited higher pilot training costs amid reports of an industry shortage. Fuel costs were less of a drag this year as oil prices eased to $78 per barrel versus $84 per barrel a year ago.
At the end of the first semester, the airline group flew to 67 local destinations and 39 international routes.
It ended the period with 72 planes, comprised 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.
