MANILA, Philippines - Listed budget airline Cebu Air Inc. (Cebu Pacific) said its net income declined 18.5 percent in the first half of the year due to foreign exchange losses and higher interest expenses.
In a financial report submitted to the Philippine Stock Exchange (PSE), Cebu Pacific said its net income amounted to P1.414 billion from January to June this year or P322 million lower than the P1.736 billion booked in the same period last year.
The low cost carrier booked a 10.1-percent increase in revenues to P21.726 billion in the first half of the year from P19.729 billion on the back of higher passenger, cargo, and ancillary revenues.
The number of Cebu Pacific passengers increased 7.9 percent to 7.5 million in the first half of the year from 6.9 million in the same period last year, translating to an 8.5-percent rise in passenger revenues to P16.977 billion from P15.653 billion.
Cargo revenues rose 8.7 percent to P1.226 billion from P1.127 billion while ancillary revenues particularly from online bookings jumped 19.5 percent to P3.524 billion from P2.949 billion.
Revenue gains were offset by the P1.349-billion net foreign exchange losses after the peso weakened to P43.2 to $1 in the first half of the year from P41.05 per $1 in the same period last year.
“The company’s major exposure to foreign exchange fluctuations is in respect to the US dollar-denominated long-term debt incurred in connection with aircraft acquisition,†Cebu Pacific said.