Cebu sees 2014 profits rise
Cebu Pacific reported a core net income of P3.3 billion (US$73.6 million), up 77% compared to the previous year, on the back of notable improvements in both revenues and operating expenses.
Total revenues grew 27% to P52 billion, driven by sustained demand for air travel and entry to new markets such as Japan, Middle East and Australia. CEB carried 16.9 million passengers in 2014, 17.5% more than the 14.4 million passengers flown in 2013.
Ancillary revenue likewise grew 29% to P8.7 billion; while cargo revenues grew 20% to P3.1 billion.
CEB posted operating income of P4.2 billion, 73% higher than previous year, supported by improvement in fuel prices. However, with this decline in fuel prices CEB posted fuel hedging losses of P2.3 billion. CEB’s Net Income posted at P853 million, up 67% from the previous year.
CEB’s 55-strong fleet is comprised of 10 Airbus A319, 31 Airbus A320, 6 Airbus A330 and 8 ATR-72 500 aircraft. It is one of the most modern aircraft fleets in the world. Between 2015 and 2021, Cebu Pacific will take delivery of 7 more brand-new Airbus A320 and 30 Airbus A321neo aircraft.
In 2014, passenger traffic grew 17.5% to 16.9M, while seat capacity grew by 14.8% to 20.1M, resulting in 83.9% SLF.
The airline utilized its fleet at 12.1 hours per day and turned them 6.6x per day.
The carrier will drop its Manila-Dammam 4x weekly service, but will add Doha in June, also with a 4 x weekly service.
Interline Agreement with Tigerair Group received over3,800 bookings since July 2014 generating approximately P18M in revenues.