Philippine budget carrier Cebu Pacific’s (CEB) net income plummeted 54% to P2.221 billion in the first nine months of the year due to higher operational expenses. This compares with last year’s income of P4.832 billion.
The decline came despite the 13.6% uptick in revenues to P24.455 billion from P21.521 billion.
Passenger revenues grew P1.446 billion or 7.9% to P19.798 billion from P18.352 billion due to the 12.8% growth in passage volume to 8.7 million from 7.7 million and reinstatement of the fuel surcharge.
Higher revenues, however, were offset by reduction in average fares by 4.4% to P2,274 from P2,378 in 2010.
Cargo revenues dropped P15.485 million or 1% to P1.524 billion from P1.540 billion following less volume transported. The dip in cargo volume was partially offset by an increase in average freight charges this year.
The number of flights mounted by the carrier went up 8.7% year-on-year as a result of the increase in average number of aircraft operated for the period from 28.7 last year to 32.6. Load factor also went up to 87%.
“CEB is gearing up for a strong finish for 2011, and stays on track for its 12-million passenger target for the year. We will continue to strengthen the aviation market in the country, especially with the number of CEB passengers and planes operating out of Philippines’ airports,” said CEB vice president for Marketing and Distribution Candice Iyog.
CEB breached the 1-million passenger mark in October, with 860,000 domestic and more than 231,000 international passengers. This despite October being an off-peak travel month in the Philippines.
From October 1-31, 2011, average load factor was 88%. A320s, 30 Airbus A321neos, and two Airbus A320 aircraft on operating lease agreements.
photo from www.cebupacificair.com
