Philippines largest airline, profit up strongly

GMT 16:07 2015 Friday ,14 August

Arab Today, arab today Philippines largest airline, profit up strongly

Cebu Pacific's budget
Manila - AFP

Cebu Pacific saw its half-year net profit soar 63 percent as low fuel costs helped it take full advantage of higher passenger and cargo traffic, the Philippines' largest airline said Friday.

The carrier reported a net income of 5.2 billion pesos ($112 million) for the January to June period, compared to 3.2 billion pesos a year earlier.

However, profit was down slightly to 2.9 billion pesos from 3.0 billion pesos in the three months to June as the cost of the company renewing its fleet and foreign exchange losses due to a rising dollar offset revenue gains.

Passenger revenues in the first half grew 9.4 percent to 22.8 billion pesos, as increased flights drove traffic 8.2 percent higher to 9.2 million passengers, it said.

Cargo revenues grew 11.4 percent to 1.6 billion pesos.

"The group generally records higher domestic revenue in January, March, April, May and December as festivals and school holidays in the Philippines increase seat load factors," the company told the stock exchange in a disclosure.

Rival Philippine Airlines reported on Tuesday a near 10-fold increase in net profit to 5.8 billion pesos, citing peak demand.

A spokesman for Cebu Pacific was not available to comment on the stock exchange filing.

Cebu Pacific's budget carrier model has thrived in the archipelagic nation of 100 million people. It flies to 34 domestic destinations and 28 others overseas, catering mostly to tourists and expatriate Filipino workers.

Net profit last year rose 67 percent to 853 million pesos due to strong growth in its domestic routes and the swift success of its new Australia route.

Cebu Pacific shares closed 0.21 percent higher at 94.15 pesos on Friday. The company's filing came after the market had closed.


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