CEBU Air Inc., also known as Cebu Pacific, says it is unfazed by the entry of PAL Express—the newly established low-fare unit of Philippine Airlines (PAL)—and remains confident it would emerge as the country’s top domestic airline.

It said revenues and domestic passengers would rise to least 30 percent and 20 percent, respectively, this year.

In a press briefing yesterday on Cebu Pacific’s tie-up with Navitaire, a wholly-owned subsidiary of Accenture, the airline’s president lauded the entry of PAL Express in the budget-airline market.

“The set up of PAL Express is going to be good for the travel market. It will be the consumers who will benefit from this. It will further enhance the low-cost airline industry,” said chief executive officer Lance Gokongwei.

Cebu Pacific expects passenger load to increase 40 percent to 45 percent from 5.5 million last year. “This year, we will exceed our seven million target passengers,” Gokongwei said.

For the first three months of the year, Cebu Pacific registered more than 20-percent increase in passenger load from a year earlier.

The budget carrier of JG Summit Holdings Inc. is also projecting full-year revenues to go over P20 billion from about P15 billion in 2007.

“This year we are looking at a 30 percent growth in revenues,” Gokongwei said.

Cebu Pacific’s net profit in 2007 jumped to P3.61 billion from its 2006 profit of P197 million. Of the amount, foreign exchange gains were recorded at P1.9 billion, leaving the airline with a recurring net income of P1.7 billion.

“The objective this year is to exceed the recurring income last year. Definitely, our first three months are ahead of last year’s revenue and net income,” said Gokongwei. From January to March last year, Cebu Pacific’s bottom line stood at about P350 million.

The low-fare carrier implemented last week a P100-increase in fuel surcharge for one-way domestic travel. It is also contemplating on adjusting the same for its international routes.

“We are seeing dark clouds ahead. We expect a rapid increase in fuel price which is creeping up so much that it’s already 45 percent to 50 percent of our operating cost. In 2007, fuel cost was just below 40 percent. Definitely, we need a fuel surcharge,” Gokongwei added.

THE strong performance of the economy last year had a positive impact on the financial results of cement maker Holcim Philippines Inc., boosting its net income to P2.2 billion from P1.5 billion a year earlier.

Cebu Air unfazed by PAL Express

CEBU Air Inc., also known as Cebu Pacific, says it is unfazed by the entry of PAL Express—the newly established low-fare unit of Philippine Airlines (PAL)—and remains confident it would emerge as the country’s top domestic airline.

RESTAURANT operator Pancake House Inc. (PHI) ended 2007 with a consolidated net profit of P63.4 million, up 58 percent from P40.15 million a year earlier.

COMPUTER maker Hewlett-Packard Co. has launched a new “family” of disk arrays at entry-level prices put within the reach of small and medium enterprises (SMEs).

THE Philippine Stock Exchange (PSE) said Wednesday it will sell separately, in a public bidding, the trading rights and shares owned in the bourse by suspended brokerage firm Asian Capital Equities Inc. (ACEI).

PCD Nominee Corp. held for foreigners 253.994 million shares, or 21.80 percent of 1.165 billion outstanding shares, in First Gen Corp. as of December 31, 2007 and 204.46 million shares, or 17.55 percent as of March 31, 2008.