Cebu Pacific looking into Hawaii, Melbourne flights
In this article (5)
Cebu Pacific may offer additional flights to Australia and the United States as part of efforts to expand its international network, its chief executive officer said.
The Gokongwei-led carrier earlier said it expects its long-haul business to post a profit, driven by new flight services and increased frequencies in its existing international routes.
“We are still considering… looking at Hawaii and Melbourne,” Cebu Air, Inc. President and Chief Executive Officer Lance Y. Gokongwei told reporters at the sidelines of a recent event when asked for the low-cost airline’s next planned long-haul route after its maiden Guam flight last March.
Mr. Gokongwei, however, noted that there are “no firm dates” yet for the said flights.
Cebu Air currently operates across 36 local and 30 international destinations with a fleet of 58 aircraft. It operates from six hubs: Manila, Cebu, Clark, Kalibo, Iloilo, and Davao.
Asked whether Cebu Pacific would also consider mounting flights to Europe, Mr. Gokongwei: “I think we would consider it, but right now, we don’t have any immediate plans at this point but it’s something we should be considering as we get additional long-haul aircraft into the system.”
“Frankly, I don’t see it happening from a Cebu Pacific perspective for 2 or 3 years,” he added.
Mr. Gokongwei said Cebu Pacific expects to ferry 19 million passengers this year, a record passenger volume, driven by the airline’s low-cost long-haul services and increased frequencies in key domestic markets from 18.4 million passengers in 2015 and also up from the 16.9 million passengers flown in 2014.
As of the nine months ended September, Cebu Pacific said passenger traffic was up 6% to 14.48 million, as capacity inched up by 0.4%.
Cebu Air, operator of budget airline Cebu Pacific Air, saw its profit double in the first nine months of the year to P7.1 billion from P3.56 billion a year ago, led by strong passenger volume, higher ticket prices and lower fuel costs during the period, it told the stock exchange in its quarterly report.
Demand remained strong during the nine-month period as Cebu Air reported its total revenue hit P46.69 billion, up 10.5%. Passenger revenue rose 10.1% to P35.36 billion while ancillary revenue — from non-ticket revenues such as baggage fees and onboard meals — was up 14.9% to P8.79 billion.
Shares in Cebu Air closed at P97.80 apiece on Friday down P3.90 or 3.83% from its previous finish of P101.70.
Questions & Answers
Q.What new long-haul destinations is Cebu Pacific considering after its Guam flight?
What new long-haul destinations is Cebu Pacific considering after its Guam flight?
The airline's chief executive officer stated they are still considering potential flights to Hawaii and Melbourne. These routes are part of their efforts to expand the international network.
Q.Does Cebu Pacific have plans to fly to Europe soon?
Does Cebu Pacific have plans to fly to Europe soon?
The CEO said they would consider it for the future, but currently have no immediate plans. They expect it would take 2 or 3 years, pending acquisition of additional long-haul aircraft.
Q.How much profit did Cebu Air record in the first nine months of the year?
How much profit did Cebu Air record in the first nine months of the year?
Cebu Air's profit doubled to P7.1 billion in the first nine months of the year, up from P3.56 billion in the previous year. This was driven by strong passenger volume and higher ticket prices.
Q.What factors contributed to the airline's increased revenue during the nine-month period?
What factors contributed to the airline's increased revenue during the nine-month period?
Total revenue rose 10.5% to P46.69 billion, with passenger revenue up 10.1% and ancillary revenue increasing by 14.9%. Strong demand and lower fuel costs also played a role.
Reader pulse
Cebu Pacific's expansion plans:
24,142 votes so far