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Cebu Pacific earnings soar1,255% to P2.22 B in Q1

Cebu Air Inc. (Cebu Pacific)

MANILA, Philippines - Earnings of Cebu Air Inc. (Cebu Pacific) soared in the first quarter of the year on the back of the steady increase in the number of passengers, higher fares and lower expenses.

Cebu Pacific reported yesterday that the airline’s net income surged 1,255 percent to P2.22 billion in the first three months of the year from P161.16 million in the same period last year.

Paterno Mantaring Jr., officer-in-charge of corporate affairs division of Cebu Pacific, said the airline attributes its bullish income and passenger growth to increased presence in key markets, strategic seat sales offering the lowest possible fares, and continuous network expansion.

 “Our latest operating statistics affirm our objective which is to further stimulate air travel and grow inbound tourism by expanding our services in new destinations,” Mantaring added.

Passenger revenues went up 22.1 percent to P10.81 billion from P8.85 billion as volume of passengers rose 13 percent to 4.3 million compared to 3.8 million while the number of flights increased by 14.3 percent with the arrival of additional aircraft.

During the period, Cebu Pacific said average fares went up 8.1 percent to P2,525 from P2,336.

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Cargo revenues went up 13.6 percent to P92.73 million from P772.54 million while ancillary revenues including online booking increased 17 percent to P2.62 billion from P2.23 billion.

The low cost carrier also managed to limit the increase in operating expenses to one percent to P11.37 billion in the first three months of the year from P11.25 billion in the same period last year.

Cebu Pacific said higher expenses were driven by its expanded long haul operations and growth in seat capacity from the acquisition of new aircraft.

However, the budget carrier said the increase was offset by the substantial reduction in fuel costs due to the sharp decline in global jet fuel prices as well as the continued strengthening of the peso against the US dollar.

Flying operations expenses fell 17 percent to P5.14 billion from P6.2 billion as aviation fuel expenses dropped 22.1 percent to P4.32 billion from P5.55 billion as average price of fuel plunged to $68.98 per barrel from $121.47 per barrel while the peso appreciated to P44.42 per $1 from P44.88 per greenback.

 

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