Budget carrier Cebu Pacific Air posted rosy results of a 213.1% improvement in net income to P2.079 billion in the first nine months of 2014 from P664.081 million registered in the same period last year.
Revenue widened by 25.7% to P38.446 billion from January to September 2014 compared to P30.582 billion from the year-ago period, attributed to the positive performance of its cargo, passage, and ancillary services.
Cargo revenues, which accounted for 5.87% of the total, grew 20.3% to P2.258 billion from P1.877 billion last year, following an increase in volume and average freight charges of cargo transported in 2014.
Passenger revenues, contributing 77.3% of the total, increased 26% to P29.725 billion from P23.591 billion. The airline attributed the growth mainly to the 14.8% increase in passenger volume to 12.5 million from 10.9 million in 2013. This came about with the addition of more aircraft to its fleet, particularly wide-body Airbus A330 aircraft with a configuration of more than 400 all-economy class seats.
As of September 30, Cebu Pacific’s fleet has increased from 47 aircraft to 51, and includes three brand-new Airbus A330 aircraft. The 9.7% increase in average fares also contributed to improved revenues.
Ancillary revenues, on the other hand, surged 26.4% to P6.463 billion from P5.115 billion. Cebu Pacific said significant improvements were noted since the airline began unbundling ancillary products and services in 2011. Improved online bookings, together with a wider range of ancillary products and services, also contributed to the growth.
Revenue for the third quarter alone rose 32.4% to P11.728 billion from P8.855 billion in the same period last year.
However, net loss for the July-September 2014 period increased to P1.099 billion from P750.124 million in the same period last year.
Cebu Pacific recently took delivery of its 52nd aircraft, a brand-new Airbus A320 with Sharklets, the airplane to be utilized for additional flights to key routes during the peak holiday travel period.
The airline said it will increase flight frequencies to nine domestic and three international routes during the peak season. Beginning December 15, additional two flights a week will be mounted on the Manila-Cebu and Manila-Tuguegarao routes; three more flights weekly on the Manila-Dumaguete route, and four more flights per week on the Manila-Zamboanga route.
From the Visayas region to Singapore, there will be an additional flight a week on the Iloilo-Singapore route (December 17 to January 14, 2015), and three more flights will be added per week on the Cebu-Singapore route (December 19 to January 7, 2015). Larger Airbus A330 aircraft will be used for some of the Manila-Singapore flights from December 15 to January 9, 2015.
Image courtesy of jscreationzs at FreeDigitalPhotos.net
