Surging fuel costs drive down Cebu Pacific earnings
Gokongwei-led budget carrier Cebu Pacific saw net profit drop 38 percent in the nine months to September to P4.38 billion, hit hard by higher fuel costs and the weakening of the peso against the US dollar.
The airline grew its revenue 7.8 percent to P50.3 billion. Passenger revenues went up 4.5 percent to P36.93 billion as passenger volume rose 2.7 percent to 14.87 million due to the increase in the number of flights and the addition of more aircraft to its fleet.
Cargo revenues expanded by 29 percent to P3.29 billion following the increase in the volume of cargo transported this year.
Operating expenses increased 15.7 percent to P43.09 billion due to the rise in fuel prices and the depreciation of the peso to an average of P50.24 per US dollar from an average of P46.95 per US dollar a year ago.
The growth in the airline’s seat capacity from the acquisition of new aircraft also contributed to the increase in expenses.
As of the end of September, the group was serving 72 domestic routes and 37 international routes with a total of 2,552 scheduled weekly flights.
Cebu Pacific operates a fleet of 62 aircraft which comprise three Airbus A319, 36 Airbus A320, 8 Airbus A330, 8 ATR 72-500 aircraft and 7 ATR 72-600.