Cebu Air Inc., operator of low-cost carrier Cebu Pacific Air, reported revenue of P11.764 billion for the first quarter of the year, 11.6% higher than the P10.542 billion posted a year earlier amid robust cargo and passenger revenues.
Operating income, however, dropped 61.2% to P512.381 million from P1.319 billion in the same period last year while net income plunged 85.8% to P164.164 million from P1.157 billion amid increased spending related to the carrier’s service and capacity expansion.
Operating expenses rose to P11.252 billion, 22.0% higher than the P9.223 billion Cebu Pacific spent during the same period last year, when it expanded operations by launching long-haul services last October and adding seat capacity by acquiring new aircraft.
Cebu Pacific noted that the increase in expenses was aggravated by the weakening of the peso against the US dollar.
Revenue from the airline’s cargo business climbed 19.1% to P679.818 million from P570.648 in 2013, following an increase in volume and average freight charges of cargoes transported.
Ancillary revenues rose 24% to P2.236 billion over the P1.803 billion registered in the same period last year, following improved online bookings.
Revenue from its passenger services grew 8.3% year-on-year to P8.848 billion from P8.169 billion, helped by a 7.1% increase in passenger volume, the country’s leading low-cost carrier said.
The listed airline flew 3.8 million passengers in the first quarter, more than the 3.5 million travelers it carried in the same period in 2013, as the group expanded its fleet, particularly by acquiring wide-body Airbus A330 aircraft with a configuration of more than 400 all-economy class seats.
Cebu Pacific’s fleet also increased to 51 aircraft as of March 31, from 43 at the end of March last year. Leading the fleet are three brand-new Airbus A330s.
The carrier completed the acquisition of Tiger Airways Philippines, Inc. on March 22, and plans to rename it to Go Air Inc.
