Surging expenses leave Cebu Pacific’s earnings grounded
A surge in fuel prices ate into Cebu Air Inc.’s bottomline.
In a filing with regulators, the Gokongwei-led airline said its net income fell 24 percent to P3.3 billion on higher expenses and a weaker peso.
Revenues climbed 6.1 percent to P37.83 billion with passenger revenues rising 6.3 percent to P28.3 billion on higher fares and passenger volume.
Cargo revenues soared 28.1 percent to P2.65 billion.
Operating expenses grew 14 percent to P33.06 billion owing to the acquisition of new aircraft.
Flying operation expenses jumped 18.1 percent to P14.52 billion, largely due to the 22.7 percent increase in aviation fuel expenses to P12.34 billion.
From only $63 per barrel last year, jet fuel prices averaged $84 per barrel in January to June this year.