Higher passenger revenues boost Cebu Air profit in 1st quarter

BusinessWorld Online

CEBU AIR, Inc., the listed operator of Cebu Pacific, reported its net income increased by 12% to P1.437 billion, driven by higher passenger revenues from a 10% increase in average fares.

In a regulatory filing, the Gokongwei-led company said revenues went up 8.3% to P18.261 billion for the three month period. The bulk came from passenger revenues, which rose 11.4% to P13.676 billion.

“This increase (in passenger revenues) was largely due to the 10.0% increase in average fares to P2,805 for the three months ended March 31, 2018 from P2,551 for the same period last year,” it said.

Cebu Air reported passenger volume grew to 4.876 million from 4.813 million last year. The budget carrier is currently has 2,622 flights a week.

The company saw a 26% increase in cargo revenues to P1.279 billion in the first quarter, while ancillary revenues fell 7.5% to P3.3 billion due to lower baggage and pre-ordered meals with the suspension of Middle East operations in 2017.

Higher fuel prices, weak Philippine peso and the airline’s purchase of new aircraft drove the company’s operating expenses 11.8% up to P15.997 billion.

“The increase was primarily attributable to the rise in fuel prices in 2018 coupled with the weakening of the Philippine peso against the US dollar…. The growth in the airline’s seat capacity from the acquisition of new aircraft also contributed to the increase in expenses,” Cebu Air said.

Expenses from flying operations increased 15% to P6.91 billion, mainly due to a 18.9% increase in aviation fuel expenses to P5.853 billion.

Cebu Air also recorded net foreign exchange losses of P838.619 million for the three months, as the Philippine peso weakened against the US dollar. The Philippine peso averaged P52.16 per US dollar for the three months ended March 31, from P49.93 per US dollar for the 12 months ended Dec. 31, 2017. — D.A. Valdez


CAB Hotline

Public Assistance 24/7



NAIA Terminal1 0919-9128457 Laoag Airport 0998-5864834
NAIA Terminal2 0919-9128458 Legaspi Airport 0919-9128461
NAIA Terminal3 0919-9128451 Mactan-Cebu T1 0919-9128464
NAIA Terminal4 0919-9128470 Mactan-Cebu T2 To be updated
Bacolod Airport 0998-5864828 Masbate Airport To be updated
Basco Airport 0998-5864829 Naga Airport 0919-9128462
Boracay Airport 0919-9128453 Ozamis Airport 0998-5864835
Busuanga Airport 0919-9128460 Pagadian Airport 0998-5864836
Butuan Airport 0998-5864830 Puerto Princessa 0998-5864837
Camiguin Airport 0998-5864831 Roxas Airport 0998-5864838
Clark Int'l. Airport 0919-9128471 Siargao Airport 0919-9128456
Davao Int'l. Airport 0919-9128469 Surigao Airport 0998-5864839
Dipolog Airport 0998-5864832 Tacloban Airport 0998-5864840
Dumaguete Airprot 0998-5864833 Tagbilaran Airport 0919-9128465
General Santos 0919-9128467 Tuguegarao Airport 0998-5864841
Iloilo Int'l. Airport 0919-9128466 Virac Airport 0919-9128463
Kalibo Int'l. Airport 0919-9128454 Zamboanga Airport 0998-5864842
Laguindingan 0919-9128468

✆ 852-8967 (CAB Legal Office)

Trunk Lines:
☎ (+632) 853-7259
☎ (+632) 854-5996

PRAD NAIA Terminal1 0919-9128457 PRAD Laguindingan 0919-9128468
PRAD NAIA Terminal2 0919-9128458 PRAD Laoag Airport 0998-5864834
PRAD NAIA Terminal3 0919-9128451 PRAD Legaspi Airport 0919-9128461
PRAD NAIA Terminal4 0919-9128470 PRAD Mactan-Cebu Int'l. 0919-9128464
PRAD Clark Int'l .Airport 0919-9128471 PRAD Naga Airport 0919-9128462
PRAD Bacolod Airport 0998-5864828 PRAD Ozamis Airport 0998-5864835
PRAD Basco Airport 0998-5864829 PRAD Pagadian Airport 0998-5864836
PRAD Boracay Airport 0919-9128453 PRAD Puerto Princessa 0998-5864837
PRAD Busuanga Airport 0919-9128460 PRAD Roxas Airport 0998-5864838
PRAD Butuan Airport 0998-5864830 PRAD Siargao Airport 0919-9128456
PRAD Camiguin Airport 0998-5864831 PRAD Surigao Airport 0998-5864839
PRAD Davao Int'l. Airport 0919-9128469 PRAD Tacloban Airport 0998-5864840
PRAD Dipolog Airport 0998-5864832 PRAD Tagbiliran Airport 0919-9128465
PRAD Dumaguete Airprot 0998-5864833 PRAD Tugeugarao Airport 0998-5864841
PRAD General Santos 0919-9128467 PRAD Virac Airport 0919-9128463
PRAD Iloilo Int'l .Airport 0919-9128466 PRAD Zamboanga Airport 0998-5864842
PRAD Kalibo Int'l. Airport 0919-9128454