THE airline of tycoon John L. Gokongwei dominated the domestic air-services market in the first nine months of the year, owing to its extensive route network and relatively low fares.
In a regulatory filing, Cebu Pacific said its domestic operations cornered 54.6 percent of the market from January to September, up from 50.8 percent in the same period last year.
Trailing behind the budget carrier is the group of Philippine Airlines (PAL), with an aggregate
share of 29.2 percent.
For the third quarter alone, the dominant low-cost carrier reported a 56.9-percent market share, climbing from 51.4 percent in the same period the year prior.
“In the third quarter of 2014, Cebu Pacific captured 56.9-percent market share and 63.7-percent consolidated market share with Tigerair Philippines,” the filing showed.
It claimed to have flown the most number of passengers during the period. It carried 4 million passengers in the third quarter of the year, bringing the year-to-date figure to 12.5 million passengers.
Cebu Pacific has set a 17-million passenger-volume guidance for the year as its capacity to fly more customers increased due to the inclusion of Tigerair Philippines in the family of the largest low-cost carrier in the country.
The airline also improved its standing in the international market, inching up from 16.3 percent to 17.4 percent in terms of market share.
“Cebu Pacific continued to grow in the international market…with Singapore, Hong Kong and South Korea as the largest markets,” the carrier said.
To expand further its operations globally, the carrier sought the approval of the Civil Aeronautics Board for the reallocation of the Manila-Haneda entitlements, all of which are currently allotted to flag carrier PAL.
The dominant budget carrier expressed interest in launching three flights per week to Haneda, as the Tan-led competitor is only utilizing 11 coefficients of the 14 weekly flights allocated to Filipino carriers.
Haneda, also known as Tokyo International Airport, is one of the two premier airports servicing the Greater Tokyo Area. It is considered the world’s most slot-restrictive airport and a prime business hub.
The airport, which is around 30 minutes from the Tokyo metropolis, has one domestic and two international passenger terminals and connects conveniently to the Tokyo monorail.
Cebu Pacific operates flights from Manila to Narita, Nagoya and Osaka in Japan. It also has flights to the hubs of the $5-trillion economy out of Cebu.
Aside from these routes, the dominant budget carrier offers flights to 28 international destinations—including Bali, Bangkok, Beijing, Brunei Darussalam, Busan, Dammam, Dubai, Guangzhou, Hanoi, Ho Chi Minh, Hong Kong, Incheon (Seoul), Jakarta, Kota Kinabalu, Kuala Lumpur, Kuwait, Macau, Phuket, Riyadh, Shanghai, Siem Reap, Singapore, Sydney, Taipei and Xiamen.
It also operates the most extensive airline network in the Philippines, with 55 routes and 44 destinations.
Cebu Air Inc. posted a net loss of P1.1 billion in the third quarter of 2014, significantly higher than the P750.1-million loss in the same three-month period the year prior.
Total revenues increased by 32.4 percent annually to P11.7 billion in the third quarter of the year, as passenger revenues surged by 34.2 percent to P8.9 billion, and ancillary revenues rose 27.9 percent to P2 billion.
Expenses, on the other hand, grew to P11 billion from P9.5 billion, resulting in the widened losses in the third quarter. However, its bottom line expanded by more than 213 percent to P2.1 billion in the first nine months of 2014 from P664.1 million in 2013.
In the same comparative periods, revenues rose by 25.7 percent to P38.4 billion from P30.6 billion, while expenses surged by a slower 25.3 percent to P35.6 billion from P28.4 billion. Shares of Cebu Air ended Friday’s trading at P71.85 apiece.