Cebu Pacific Net Profit Down Due to Soaring Fuel Prices
Philippine LCC, Cebu Pacific Air, this week recorded a net profit of PHP2.78 billion for the first 9 months to September down 37% year-on-year, despite having a US$9.6 million net loss from the 3rd quarter, that the carrier said was due to soaring fuel prices and a strong US dollar. The Cebu Pacific Group, including subsidiary carrier CebGo, generated earnings of PHP54 billion in the 9 months to Sept 30, 7.4 percent greater than in the comparable year-ago period of time. Passenger revenues grew 7.1% and freight earnings soared 24.6%, to PHP4.1 billion. The airline’s operating costs grew 15.8% in the first 9 months, to PHP49.9 billion.
Fuel costs rose 28.3%, to PHP18.7 billion. Cebu Pacific has declared five A320 NEOs be leased by it from Avolon in 2019 and added 3 ATR 72-600s and five A321 CEO to its fleet Sept 30. From December 15, a Clark Tagbilaran route will be launched by the LCC. Cebu Pacific might have boosted ASKs from Clark in comparison to 2017. Since our Clark Cebu route from the year 2006, we’ve never stopped operating in Clark and Clark’ve never be left by us. We maintained our existence taking a rate of expansion. Clark has shown its viability to Central and North Luzon.
We stay committed to becoming a partner in the evolution of the Clark Economic Zone however ramping-up our air connectivity,” said Cebu Pacific VP Jomar Rodriguez, for quality and safety. Last month, the airline celebrated the 5th anniversary of its own Manila Dubai A330 course. Cebu Pacific stated that since 2013 the Manila Dubai service became one of the strongest performers from the entire Cebu Pacific network, with load factors always above 85%. Separately, Cebu Pacific and its own local competitors are forced to both cancel a selected number of Flights starting this Thursday on Tuesday as Manilas Ninoy Aquino International Airport performs upgrades to its own air traffic management and radar systems. Flag carrier Philippine Airlines has canceled approximately 75 flights throughout the period, Cebu Pacific has announced about 36 cancellations.