Cebu Pacific half-year net profit soars 63%

Agence France-Presse
Cebu Pacific half-year net profit soars 63%
The carrier reports a net income of P5.2 billion for the January to June period, compared to P3.2 billion a year earlier

MANILA, Philippines – Cebu Pacific saw its half-year net profit soar 63% as low fuel costs helped it take full advantage of higher passenger and cargo traffic, the Philippines’ largest airline said Friday, August 14.

The carrier reported a net income of P5.2 billion ($112.63 million) for the January to June period, compared to P3.2 billion ($69.32 million) a year earlier.

However, profit was down slightly to P2.9 billion ($62.82 million) from P3 billion ($64.99 million) in the 3 months to June as the cost of the company renewing its fleet and foreign exchange losses due to a rising dollar offset revenue gains.

Passenger revenues in the first half grew 9.4% to P22.8 billion ($493.93 million), as increased flights drove traffic 8.2% higher to 9.2 million passengers, it said.

Cargo revenues grew 11.4% to P1.6 billion ($34.65 million).

“The group generally records higher domestic revenue in January, March, April, May, and December as festivals and school holidays in the Philippines increase seat load factors,” the company told the stock exchange in a disclosure.

Rival Philippine Airlines reported on August 11 a near 10-fold increase in net profit to P5.8 billion ($125.61 million), citing peak demand.

A spokesman for Cebu Pacific was not available to comment on the stock exchange filing.

Cebu Pacific’s budget carrier model has thrived in the archipelagic nation of 100 million people. It flies to 34 domestic destinations and 28 others overseas, catering mostly to tourists and expatriate Filipino workers.

Net profit last year rose 67% to P853 million ($18.47 million) due to strong growth in its domestic routes and the swift success of its new Australia route.

Cebu Pacific shares closed 0.21% higher at P94.15 ($2.04) Friday. The company’s filing came after the market had closed.

$1 = P46.16

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