Cebu Air net income surges 115.7% in first quarter

August 13, 2019

Cebu Air Inc., operator of Cebu Pacific and Cebgo, said Tuesday net income surged by 115.7 percent in the first quarter on higher passenger and cargo revenues.

The Gokongwei-led airline carrier posted a net income of P7.14 billion in the January to June period from P3.31 billion in the same period last year. 

It generated revenues amounting to P44.70 billion for the six months ended June, 18.2 percent higher than the P37.84 billion revenues in the same period last year.

Passenger revenues went up by 17.8 percent  to P33.35 billion for the first half from P28.30  billion recorded in the six months ended June  last year. 

Cebu Pacific attributed the  increase to the 8.8 percent rise in average fares to P2,974 for six months from P2,734 for the same period last year. 

Passenger volume also grew by 8.3 percent to 11.213 million from 10.354 million last year as it added bigger A321 aircraft. 

Cargo revenues increased by 6.9 percent  to P2.84 billion for the six months ended June from P2.65 billion for the  same period last year following the increase in both volume and yield of cargo transported in 2019. 

Operating expenses reached P35.772 billion, higher by 8.2 percent than the P33.060 billion operating expenses last year. 

“The increase was driven by its expanded operations, growth in seat capacity from the acquisition of new aircraft and the weakening of the Philippine peso against the US dollar as referenced by the depreciation of the Philippine peso to an average of P52.20 per US dollar for the six months ended June 30, 2019 from an average of P51.98 per US dollar last year based on the Philippine Dealing and Exchange Corporation (PDEx) weighted average rates,” Cebu Pacific said.  

Flying operations expenses increased by  4.6 percent to P15.201 billion  from P14.52 billion in the same period last year. 

“This was largely attributable to the increase in pilot training costs,” the company said.

Fuel expense was also slightly higher due to the 8.3 percent increase in fuel volume offset by lower average published fuel MOPS ( Mean of Platts Singapore) price of $$78 per barrel for six months ended June from $84 per barrel in 2018.  DMS