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Wednesday, March 25, 2015

Cebu Pacific's net income gets a lift from increase in passengers

The country’s largest budget airline saw its profit rise by two-thirds last year.

In a disclosure to the Philippine Stock Exchange, Gokongwei-owned Cebu Air Inc (CEB) said it earned P853.5 million in 2014, up 67 percent from the P511.95 million the previous year.

Fueling the growth was a 27 percent increase in revenue to P52 billion last year from P41 billion in 2013. Passenger revenue comprised 77 percent of total revenue and increased by 27 percent to P40.19 billion from P31.66 billion over the same period. Cargo revenue also grew by 20.6 percent and comprised 6 percent of the top line.

The operator of Cebu Pacific ascribed the higher revenue to a 17.5 percent growth in passenger volume to 16.9 million last year from 14.4 million in 2013.

The budget carrier fielded 6.9 percent more flights after it acquired wide-body Airbus A330 to bring its fleet to 52 by yearend.

Alongside the higher number of flights, operating expenses also climbed 23.9 percent to P47.843 billion last year from the P38.6 billion in 2013. More than half of that pertained to flying operational expenses, which also increased by a fifth.

Lower jet fuel prices however partly made up for the increase in fuel expenses brought about by the higher number of flights mounted. Jet fuel cost $112.48 a barrel last year, down from the $122.97 average in 2013.

Jet fuel comprised half of operating expenses and rose 19 percent year-on-year.

Cebu Pacific shares were down 2 percent at P85.25 each at the close of trading today.

- Interaksyon

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