Cebu Pacific Q1 profit drops 68.2% to P1.28B
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Low-cost carrier Cebu Pacific said its first quarter net income fell 68.2 percent to P1.28 billion from P4 billion a year ago due to increased expenses arising from higher fuel prices coupled with a weaker of Philippine peso.The airline told the stock exchange on Wednesday that its operating expenses swelled by 20.3 percent to P14.3 billion in the first quarter as the peso depreciation affected fuel, aircraft and engine lease, and repairs and maintenance expenses, and also contributed to the increase in international airport charges.
However, it said revenues continued to grow by 4.7 percent to P16.86 billion, driven by increases in passenger and cargo volumes and ancillary revenue. Cebu Pacific operates a fleet of 59 aircraft and serves 62 domestic routes and 41 international routes with a total of 2,870 scheduled weekly flights from seven hubs in the Philippines.
Questions & Answers
Q.What was the main reason for Cebu Pacific's significant profit drop in the first quarter?
What was the main reason for Cebu Pacific's significant profit drop in the first quarter?
The airline's profit fell primarily due to increased operating expenses, driven by higher fuel prices and the depreciation of the Philippine peso. These factors inflated costs for fuel, aircraft leases, and repairs, along with international airport charges.
Q.Did Cebu Pacific's revenue also decrease during the first quarter?
Did Cebu Pacific's revenue also decrease during the first quarter?
No, Cebu Pacific's revenue actually continued to grow by 4.7 percent, reaching P16.86 billion. This increase was attributed to higher passenger and cargo volumes, as well as growth in ancillary revenue streams.
Q.How many aircraft does Cebu Pacific currently operate, and how extensive is its route network?
How many aircraft does Cebu Pacific currently operate, and how extensive is its route network?
Cebu Pacific operates a fleet of 59 aircraft. It serves a total of 103 routes, comprising 62 domestic routes and 41 international routes, with 2,870 scheduled weekly flights from seven Philippine hubs.