August 18, 2009
Philippine low cost carrier Cebu Pacific has reported its first-half profit of $321 million, up 21% than 2008 figures according to the disclosures of its holding firm JG Summit.
JG Summit Holdings said Cebu Pacific’s gross revenue jumped 21.3 percent to P11.39 billion as a result of its additional flight frequencies and opening of new route destinations as a result of its extensive expansion program.
Cebu Pacific Chief Executive Officer Lance Gokongwei said the airline expects delivery of 2 new airbus 320 and 2 ATR aircraft his year to support its domestic expansion which already carried 4.3 million passengers in the first half of the year. He said that they are expecting a full-year target of nine million passengers this year but challenges remained in the second half most notably due to increase competition by other low cost operators in the country.
Cebu Pacific operating expenses also increased because of new aircraft joining its fleet to P9.28 billion($193 million) from P8.19 billion a year earlier. It however incurred foreign exchange losses of P223.38 million, but is 77 percent lower than last year’s P958.72 million figures.
Its biggest break came from fuel hedging gains of P471.43 million against P77.11 million last year.
“All these factors contributed to the turnaround in the airline’s bottom line, from a net loss of P15.66 million last year to a net income of P1.82 billion this year,”Gokongwei added.