MANILA – The operator of Cebu Pacific, which has recently experienced multiple flight delays and cancellations, has successfully transported more passengers and generated higher revenues. This has allowed the budget carrier to become profitable in the first half of the year.
In its latest financial statement, Cebu Air reported a net income of P3.75 billion from January to June, a significant improvement from the net losses of P9.5 billion during the same period last year.
The increase in net income was driven by a growth in total top-line figures, with revenues reaching P43.55 billion and passenger revenues surging by 158 percent to P30.13 billion.
Cebu Pacific, led by the Gokongwei group, experienced a 63 percent growth in passenger volume, serving 10.3 billion passengers after increasing the number of flights.
However, cargo revenues declined by 44 percent to nearly P2 billion in the first half due to lower cargo kilograms flown and lower yield from cargo services.
On the other hand, ancillary revenues increased by 109 percent to P11.43 billion for the period, driven by higher passenger volume and flight activity.
The company also gained a profit from the disposal of assets, amounting to P262.19 million, which included the sale of one ATR 72-500 aircraft previously classified as an asset held for sale.
However, flying operations expenses increased by 57.6 percent to P16.77 billion in the first six months due to higher fuel consumption.
Recently, the low-cost airline faced flight delays and cancellations due to aircraft unavailability caused by a global supply chain crunch and adverse weather conditions. Some of its aircraft are currently undergoing maintenance and waiting for service from engine manufacturer Pratt & Whitney.
“The past few months have been challenging for Cebu Pacific, but we remain committed to providing safe, reliable, and affordable flights to our passengers, and supporting economic growth in the Philippines and the region,” said Cebu Pacific president and chief commercial officer Alexander Lao.
To address the flight disruptions, the airline is increasing its fleet and plans to receive 21 aircraft this year, with nine units already delivered.
Cebu Pacific has allocated P42 billion for capital expenditures this year, primarily for aircraft-related spending.
As of end-June, Cebu Pacific operates an 80-aircraft fleet.
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