Cebu Pacific (PSE: CEB), and its wholly owned subsidiary Cebgo (formerly Tigerair Philippines), generated a net income of P2.2 billion from January to March 2015, over 13 times higher than the P164.2 million earned in the same period last year.
The Cebu Pacific Air group’s Q1 2015 revenues increased by 20.7% year-on-year to P14.2 billion. Passenger revenues grew by 22.2% to P10.8 billion. Cargo revenues went up to P772.5 million, an increase of 13.6% compared to the same period in 2014.
Ancillary revenues likewise posted an increase of 17% for a total of P2.6 billion, driven by improved online bookings and a wider range of ancillary revenue products and services.
The CEB group also achieved notable Q1 2015 passenger growth in domestic and international markets. It carried a total of 4.3 million passengers during the first quarter of 2015, 13% higher than the 3.8 million passengers flown in the same period last year.
The upsurge was largely influenced by growth in passengers flown to and from long haul destinations such as Dubai, Riyadh, Kuwait, and Sydney.
“CEB attributes its bullish income and passenger growth to increased presence in key markets, strategic seat sales offering the lowest possible fares, and continuous network expansion. Our latest operating statistics affirm our objective which is to further stimulate air travel and grow inbound tourism by expanding our services in new destinations,” said Atty. JR Mantaring, Officer-in-Charge for CEB Corporate Affairs.
Recent decline in fuel prices also contributed to the significant improvement in net income, as CEB’s total fuel cost for Q1 2015 was reduced by 22% to P4.32 billion, from P5.55 billion expended in the same period last year.
During the first quarter of 2015, CEB launched direct Kalibo-Hong Kong and Cebu-Tokyo flights, while Cebgo launched Manila-Legazpi and Cebu-Puerto Princesa flights. CEB is also set to launch twice weekly direct flights between Manila and Doha, Qatar starting June 4, 2014. The airline will be the only Philippine carrier flying between these two cities, to serve more Global Filipinos in the Middle East.