Higher passenger and cargo volumes boosted budget carrier Cebu Pacific Air’s net income in the first half of 2015 by 63.6% to P5.200 billion from P3.178 billion year-on-year.
Net income in the second quarter alone, however, declined 1.3% to P2.975 billion from P3.014 billion in the same period last year, while revenue for the same period increased 2.4% to P15.308 billion from P14.953 billion, reported Cebu Air, Inc., the airline’s mother company, in a disclosure to the Philippine Stock Exchange.
Revenue in the first six months of the year rose 10.4% to P29.506 billion from P26.717 billion due to growth in revenue from its passage, cargo, and ancillary businesses.
On passenger operations, revenues jumped 9.4% to P22.813 billion from P20.852 billion posted last year, mainly attributable to the 8.2% increase in passenger volume to 9.2 million from 8.5 million in 2014. The passenger numbers were bolstered by the increased number of flights in 2015 that went up 10.7% year-on-year, as the group added more aircraft to its fleet, particularly, the wide-body Airbus A330 aircraft with a configuration of more than 400 all-economy class seats.
Cebu Pacific’s fleet increased from 52 aircraft units as of June 2014 to 55 units as of June 30, 2015. The new acquisitions include two brand-new Airbus A330 units delivered in 2014 and 2015. The increase in average fares by 1.1% to P2,474 from P2,446 last year also contributed to the growth in revenue, the airline noted.
Likewise, cargo revenues went up 11.4 % to P1.601 billion from P1.437 billion last year, following the increase in the volume of cargo transported in 2015, the carrier said.
Revenue from ancillary services, meanwhile, spiked 15% to P5.092 billion from the P4.428 billion registered in the first half of 2014 on an 8.2% increase in passenger traffic and 6.3% increase in average ancillary revenue per passenger. Improved online bookings, together with a wider range of ancillary revenue products and services, also contributed to the increase.
Lower jet fuel prices reduced the group’s operating expenses to P23.469 billion, slightly lower by 1.2% from the P23.755 billion in operating expenses recorded last year.
As of June 2015, Cebu Pacific operates an extensive route network serving 56 domestic routes and 42 international routes with a total of 2,631 scheduled weekly flights. It operates from seven hubs, including the Ninoy Aquino International Airport Terminal 3 and Terminal 4, Mactan-Cebu International Airport, Clark International Airport, Davao International Airport, Ilo-ilo International Airport, and Kalibo International Airport.
The group operates a fleet of 55 aircraft comprising 10 Airbus A319s, 31 Airbus A320s, six Airbus A330s, and eight ATR 72-500 aircraft. It operates its Airbus aircraft on both domestic and international routes and operates the ATR 72-500 aircraft on domestic routes, including destinations with runway limitations.
