Low-cost carrier Cebu Pacific and subsidiary Cebgo reported a consolidated net income of P4.376 billion for the first nine months of 2017, a decrease of 38.3% from the P7.098 billion net income earned in the same period last year.
For the third quarter, the airline group recorded a net income of P42.097 million from a net loss of P583.647 million in the same quarter last year, said Cebu Air, Inc. in a disclosure to the Philippine Stock Exchange.
In the first nine months of the year, the group generated revenues of P50.331 billion, which is 7.8% higher than the P46.691 billion revenues earned in the same period last year. The growth in revenue was the result of positive earnings from its passenger, cargo, and ancillary operations.
Passenger revenues rose 4.5% to P36.929 billion from P35.356 billion posted in the first nine months of 2016. The increase was mainly attributable to the 2.7% growth in passenger volume to 14.873 million from 14.477 million last year, driven by the 3.5% increase in the number of flights in 2017 as the group added more aircraft to its fleet. The number of aircraft increased from 56 in September 2016 to 62 as of September 2017. The rise in average fares by 1.7% for the nine months of 2017 also contributed to the revenue hike.
Revenues from cargo operations likewise improved, going up 29% to P3.288 billion from P2.549 billion following the increase in the volume of cargo transported in 2017.
Ancillary revenues went up 15.1% to P10.113 billion in the first nine months of this year from P8.786 billion last year, consequent to the 12% increase in average ancillary revenue per passenger. Improved online bookings, pricing adjustments, and a wider range of ancillary revenue products and services also contributed to the increase.
The group’s route network now has 25 international and 37 domestic destinations. Cebu Pacific has a fleet that includes one Airbus A319, 35 Airbus A320s and eight Airbus A330s. The Cebgo fleet is composed of eight ATR 72-500 and seven ATR 72-600 aircraft. Between 2017 and 2022, Cebu Pacific expects delivery of seven more brand-new Airbus A321ceo and 32 Airbus A321neo aircraft.
