Low-cost carrier Cebu Pacific and subsidiary Cebgo reported a net income of P3.426 billion in the first quarter of 2019, an increase of 138.4% from the P1.437-billion net income earned in the same period last year as revenues from its cargo and passenger businesses recorded double-digit growth.
Parent company Cebu Air, Inc., in a regulatory disclosure, said the group earned P21.177 billion in revenue for the first three months of the year, 16% higher than the P18.261-billion revenue generated in the same period last year.
Revenues from cargoes grew 12.7% to P1.442 billion from P1.279 billion following the increase in both yield and volume of cargo transported in 2019.
Passenger revenues likewise rose, up 14.6% to P15.679 billion from P13.676 billion last year. The company said the growth is mainly attributable to the 8.5% growth in passenger volume to 5.289 million from 4.876 million last year as the group added bigger A321 aircraft to its fleet. The increase in average fares by 5.7% also bolstered revenues.
Revenues from ancillary services jumped 22.7% to P4.056 billion from P3.306 billion, attributable to the increase in average ancillary revenue per passenger by 13.1% from pricing adjustments and increased volume of certain ancillary products and services.
The group incurred operating expenses of P17.345 billion for the first three months of the year, higher by 8.4% than the P15.997 billion reported in the same months last year. The company said 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 U.S. dollar.
As of March 31, 2019, the group operates a fleet of 70 aircraft and has an extensive route network serving 68 domestic routes and 38 international routes with a total of 2,733 scheduled weekly flights. It operates from seven hubs, namely, Ninoy Aquino International Airport, Mactan-Cebu International Airport, Clark International Airport, Davao International Airport, Ilo-ilo International Airport, Kalibo International Airport, and Laguindingan Airport.
