SUMMARY
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MANILA, Philippines – The operator of top Philippine carrier Cebu Pacific reported on Thursday, March 13, that its net profit plunged more than 85% for last year on huge foreign exchange losses from a weaker peso.
Cebu Air reported an after-tax net profit of P512 million ($11.48 million) in the 12 months to December 2013, down from P3.57 billion in the same period in 2012.
The operator swung into a net loss of P152 million in the 4th quarter, from a net profit of P1.299 billion in the comparative period a year earlier.
“Our outstanding debt, pre-delivery payments (of new aircraft), fuel purchases, leases, and some maintenance expenses are pegged on the US dollar,” it said in a statement.
Cebu Air said the exchange rate, fuel, and competition in long-haul routes were key challenges.
It reported that full-year revenues rose 8.2% to P41.0 billion last year, but the company suffered foreign exchange losses of P2.063 billion, compared to a gain of P1.205 billion in 2012.
It said Cebu Pacific retained its position as the largest domestic carrier in the Philippines with a 50.4% share.
Last month, Cebu Air agreed to acquire small domestic rival Tigerair Philippines for $15 million. – Rappler.com
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