TRAFFIC within the Cebu Pacific network should rise by about 6.5 percent to 18 million passengers this year, as the dominant budget carrier starts gearing up to improve its long- and short-haul operations in the coming months.
The pace by which the carrier aims to expand, however, was slower than the growth rate posted in 2014.
The airline of tycoon John L. Gokongwei flew 16.9 million passengers last year, a few notches away from its 17 million-passenger target for 2014, but still an increase of 17.5 percent, from 14.4 million passengers served in 2013.
Cebu Air Inc. President Lance Y. Gokongwei said the 18-million-passenger goal is already the combined target for both Cebu Pacific and Cebgo, which used to operate as Tigerair Philippines.
“This year we are shooting for 18 million passengers combined from 16.9 million in 2014. I think the bulk will be from some increases on domestic and short haul,” he said. “But in terms of percentage increase, the greatest increase will be from the long haul because last year, we launched the four additional routes.”
The group served roughly 4.3 million passengers during the first quarter of the year. It was 13 percent higher than the 3.8 million passengers flown in the same period in 2014.
The upsurge was largely influenced by growth in passengers flown to and from long-haul destinations, such as Dubai, Riyadh, Kuwait and Sydney.
During the first quarter of 2015, the airline launched direct Kalibo-Hong Kong and Cebu-Tokyo flights, while Cebgo launched Manila-Legazpi and Cebu-Puerto Princesa flights. Cebu Pacific 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.
Cebu Air booked a net income of P2.2 billion in the first three months of 2015, over 13 times higher than the P164.2 million recorded during the same period the year prior.
The group’s revenues during the first quarter soared by 21 percent to P14.2 billion, as earnings from passenger operations grew by 22 percent to P10.8 billion, and cargo by 14 percent to P772.5 million. Revenues from ancillary services went up by a robust 17 percent to P2.6 billion due to improved online bookings and an expanded roster of ancillary revenue products and services.
Recent decline in fuel prices also contributed to the significant improvement in net income, as Cebu Pacific total fuel cost for the first quarter was reduced by 22 percent to P4.32 billion, from P5.55 billion expended in the same period last year.
Cebu Pacific has a 55-strong fleet, composed of 10 Airbus A319, 31 Airbus A320, six Airbus A330 and weight ATR 72-500 aircraft. Lorenz S. Marasigan