Low-cost carrier Cebu Pacific and subsidiary Cebgo reported a net income of P6.754 billion in the first nine months of 2019, up 142.9% from the P2.781 billion earned in the same period last year.
Revenue from January to September 2019 reached P63.625 billion, 17.7% higher than the P54.037-billion revenue earned in the same period last year, parent company Cebu Air, Inc. said in a regulatory disclosure.
For the third quarter of 2019, Cebu Pacific recorded a lower net loss amounting to P384.309 million, or 25.9% less than the P518.433 million net loss for the same quarter last year.
Passenger revenues for the first nine months of 2019 went up by 17.9% to P46.598 billion from P39.537 billion from the same period in 2018. Cebu Air said this is mainly due to the 10.4% growth in passenger volume to 16.7 million from 15.1 million last year as the group added bigger A321 aircraft to its fleet. The increase in average fares by 6.7% also contributed to the increase in passenger revenues.
Cargo revenues likewise grew, registering 5.3% to P4.315 billion from P4.098 billion following the increase in both volume and yield of cargo transported in 2019.
Ancillary revenues jumped 22.2% to P12.711 billion from P10.402 billion, the growth attributable to the increase in average ancillary revenue per passenger by 10.7% from pricing adjustments and increased volume of certain ancillary products and services.
The group’s operating expenses of P53.809 billion for the first nine months of 2019 are higher by 7.8% than the P49.900 billion reported in the same period last year. The company said this was driven by its expanded operations and growth in seat capacity from the acquisition of new aircraft, partially offset by the strengthening of the Philippine peso against the US dollar.
As of September 2019, the group operates an extensive route network serving 80 domestic routes and 41 international routes with a total of 2,727 scheduled weekly flights. It operates from seven hubs, including the Ninoy Aquino International Airport; Mactan-Cebu International Airport; Clark International Airport; Davao International Airport; Iloilo International Airport; and Kalibo International Airport.
Currently operating a fleet of 72 aircraft, the group has ordered 31 more from Airbus that will be delivered starting 2021.