The net income of Philippine budget carrier Cebu Pacific (CEB) dropped 22.9% to P2.440 billion in the first six months of the year from P3.166 billion for the same period last year. This is despite strong revenues from its passenger and cargo operations.
Total revenues grew 12.1% to P16.730 billion from P14.920 billion in the first half of last year.
Low cargo volumes clipped cargo revenues by 3.7% to P963.189 million from P1 billion.
For the first half of the year, CEB claimed a 46% market share in the country’s total domestic cargo. The airline carried 37.5 million kilograms, besting the combined cargo loads of both Philippine Airlines and AirPhil Express.
The cargo division services more than 500 accounts and offers express cargo and transshipment services.
Revenues from passage operations rose P980.138 million or 7.6% to P13.865 billion in the first half from P12.885 billion last year. The budget carrier attributed the positive performance to a 13.4% rise in passenger volume to 5.9 million from 5.2 million driven by more flights.
Revenues from ancillary services went up P867.265 million or 83.8% to P1.902 billion from P1.034 billion following changes in travel regulations related to checked-in luggage as well as strong online booking.
For the period in review, the airline racked up operating expenses of P14.595 billion, up 29.5% from last year’s P11.273 billion due to higher expenses attributed to seat growth partially offset by the strengthening Philippine peso against the US dollar.
On October 14, 2011, CEB will launch a daily Zamboanga to Tawi-Tawi (both in Mindanao, southern Philippines) service and a thrice weekly Cagayan de Oro to Iloilo (also southern Philippines) service.
CEB increased domestic capacity by 5.5% in the first half with the addition of a brand-new Airbus A320 aircraft in December 2010 and January 2011.
The airline currently operates 10 Airbus A319s, 15 Airbus A320s, and 8 ATR-72 500s. By the end of 2011, it will be operating a fleet of 37. Between 2012 and 2021, CEB will take delivery of 23 Airbus A320s and 30 Airbus A321neos, and two Airbus A320s on operating lease agreements.
