Manila, Philippines – BOUYED by a 10-percent average increase in fares in the first quarter, Cebu Air Inc.’s profits grew by 12 percent during the said period to P1.44 billion, despite posting flat passenger volumes.
Based on a disclosure to the local bourse, the company booked P18.62 billion in revenues, an 8.3-percent increase from P16.86 billion in the same period the year prior. Passenger revenues continued to soar by 11.4 percent to P13.67 billion, from P12.27 billion, while cargo revenues grew by 26 percent to P1.28 billion.
Ancillary revenues declined by 7.5 percent to P3.31 billion, from P3.57 billion, due to lower baggage and preordered meals in line with the suspension of its Middle East operations in 2017.
Expenses of Cebu Air rose by 11.8 percent to P14.30 billion during the said period, as jet fuel prices in the first quarter increased, while the Philippine peso continued to depreciate.
Cebu Air is the operator of budget carrier Cebu Pacific, which has an extensive route network serving 71 domestic routes and 37 international routes with a total of 2,622 scheduled weekly flights.
It operates from seven hubs, including the Ninoy Aquino International Airport (Naia) Terminal 3 and Terminal 4 both located in Pasay City, Metro Manila; Mactan-Cebu International Airport located in Lapu-Lapu City, part of Metropolitan Cebu; Diosdado Macapagal International Airport located in Clark, Pampanga; Davao International Airport located in Davao City, Davao del Sur; Iloilo International Airport located in Iloilo City, regional center of the Western Visayas region; Kalibo International Airport in Kalibo, Aklan; and the Laguindingan Airport in Misamis Oriental.
As of end-March, the airline operated a fleet of 63 aircraft, with an average aircraft age of about 5.09 years.