Cebu Air swings back to profitability
MANILA -The operator of Cebu Pacific, which recently dealt with several flight delays and cancellations, managed to fly more passengers and rake in higher revenues, allowing the budget carrier to return to profitability in the first half.
In its latest financial statement, Cebu Air reported that its net income amounted to P3.75 billion in January to June, a reversal of P9.5 billion in net losses in the same period a year ago.
The bottom line was lifted by total top-line figures growing more than twofold to P43.55 billion for the period as passenger revenues soared by 158 percent to P30.13 billion.
The Gokongwei-led airline saw passenger volume improve by 63 percent to 10.3 billion after servicing more flights.
Cargo revenues declined by 44 percent to nearly P2 billion in the first semester because of “lower cargo kilograms flown and lower yield from cargo services.”
Higher passenger volume and flight activity, meanwhile, drove ancillary revenues by 109 percent to P11.43 billion for the period.
It booked a gain on disposal amounting to P262.19 million, a portion of which was due to the sale of one ATR 72-500 aircraft that had been previously classified as an asset held for sale.
Meanwhile, flying operations expenses climbed 57.6 percent to P16.77 billion in the first six months due to higher fuel consumption.
Recently, the low-cost airline had to delay or cancel flights due to unavailability of aircraft amid a global supply chain crunch, apart from the inclement weather conditions. Some of its jets are currently parked for maintenance and awaiting service from engine manufacturer Pratt & Whitney.
“The past few months have been one of the toughest for Cebu Pacific, but we remain steadfast in our commitment to provide safe, reliable and affordable flights to our passengers and support economic growth in the Philippines and across the region,” Cebu Pacific president and chief commercial officer Alexander Lao said.
The airline, to mitigate the flight disruptions, is ramping up its fleet with the delivery of 21 aircraft this year. It has received nine units so far.
The listed company has allocated P42 billion in capital expenditures this year, mostly for aircraft-related spending.
As of end-June, Cebu Pacific operated an 80-aircraft fleet.
