Cebu Pacific Q1 profit more than doubles

Budget airline Cebu Pacific saw profit in the first quarter of the year more than doubled on strong demand and as fuel costs, which weighed on earnings in 2018, eased during the period.

Cebu Pacific, owned by the Gokongwei family’s JG Summit Holdings, said in a stock exchange filing that net income from January to March this year hit P3.43 billion, up more than 138 percent compared to the same period in 2018.

The airline, which signaled its intention to expand aggressively this year, also saw total revenues hit P21.18 billion, up 16 percent. Most of this came from passenger ticket sales, which rose 14.6 percent to P15.68 billion. Cebu Pacific, which recently took delivery of newer planes such as the next-generation A321neo, saw passenger volume increase 8.5 percent to 5.3 million. Average fares also ticked higher to P2,965, an increase of 5.7 percent.

The airline also improved cargo revenues by 12.7 percent to P1.44 billion as well as ancillary revenues, which increased 22.7 percent to P4.1 billion.

As noted, the carrier’s bottom line was propped up by the 4.3-percent decline in oil prices, a major operating expense.

The company’s flying expenses alone rose 3.8 percent to P7.17 billion mainly as it ramped up operations.

Overall, operating expenses went up 8.4 percent to P17.34 billion.

“The increase was driven by its expanded operations, growth in seat capacity from the acquisition of new aircraft and the weakening of the Philippine peso against the US dollar,” Cebu Pacific said in its filing.