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Cebu Air net income surges 12% in first quarter

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AFP

Cebu Air, Inc. reported its net income for the first three months of 2018 stood at P1.437 billion, a 12% surge from the P1.283 billion recorded in the same period last year.

Its revenues also grew to P18.261 billion, 8.3% higher from the P16.864 billion in the first quarter of 2017.

In a regulatory filing, the Gokongwei-led company said the turnout is expected. “The Group generally records higher revenues in January, March, April, May and December as festivals and school holidays in the Philippines increase the Group‟s seat load factors in these periods,” it said.

Passenger revenues were up at P13.676 billion, 11.4% higher than P12.277 billion in 2017.

“This increase was largely due to the 10.0% increase in average fares to P2,805 for the three months ended March 31, 2018 from P2,551 for the same period last year,” the carrier wrote.

It also said, passenger volume grew to 4.876 million from 4.813 million last year, which added to the revenue hike.

A 26% increase in cargo revenues was also seen in the report, as it rose to P1.279 billion from P1.015 billion in the same period last year.

The company’s operating expenses was up 11.8% at P15.997 billion compared to last year’s P14.302 billion, due to higher fuel prices, weak Philippine peso and the airline’s purchase of new aircraft.

“The increase was primarily attributable to the rise in fuel prices in 2018 coupled with the weakening of the Philippine peso against the U.S. dollar…. The growth in the airline‟s seat capacity from the acquisition of new aircraft also contributed to the increase in expenses,” it wrote. — Denise A. Valdez