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Saturday, May 16, 2015

Cebu Pacific's net income soars amid slump in price of jet fuel

Cebu Pacific is making a killing, as first-quarter profit soared because of the combination of lower fuel costs and strong demand for travel.

In a statement, Cebu Air Inc (CEB) said it earned P2.23 billion in the January to March period, or 1,255 percent more than the P164.16 million in the same three months last year.

"CEB attributes its bullish income and passenger growth to increased presence in key markets, strategic seat sales offering the lowest possible fares and continuous network expansion," JR Mantaring, officer-in-charge for CEB corporate affairs.

Revenue rose by a fifth to P14.2 billion this year from P11.764 billion last year.

The passenger business, which comprised nearly three-fourths of CEB’s revenue, climbed by 22 percent to P10.81 billion from P8.85 billion in 2014.

The Gokongwei-owned airline ascribed this to the 13 percent increase in passenger volume to 4.3 million from 3.8 million last year and the 8.1 percent increase in average fares to P2,525 from last year’s P2,336.

CEB mounted 14.3 percent more flights after it acquired wide-body Airbus A330 aircraft with a configuration of more than 400 all-economy class seats.

Cargo revenues increased 13.6 percent to P772.545 million from P679.818 million last year.

Operating expenses rose by a slower one percent to P11.368 billion this year from P11.252 billion last year. While the company embarked on costlier long-haul flights, cheaper jet fuel tempered overall expenses by 17 percent to P5.144 billion this year from P6.2 billion in 2014.

Aviation fuel expenses fell by 22.1 percent to P4.325 billion from P5.551 billion over the same period.

Published jet fuel prices averaged $68.98 per barrel, half the $121.47 in 2014.

- Interaksyon

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