PROFITS of Cebu Air Inc. rose by more than two-thirds in the first semester of 2015, thanks to the savings generated from the declining price of jet fuel.
According to the carrier’s latest financial statement, the operator of budget carrier Cebu Pacific booked P5.2 billion in net profits during the first six months, a 63.6-percent increase from the P3.18 billion the year prior.
In the same comparative periods, the company registered a 10.4-percent increase in revenues to P29.51 billion and a 1.2-percent decline in operating expenses to P23.47 billion.
The robust top line was fueled by the increase in passenger, ancillary and cargo revenues generated during the period.
Cebu Pacific and sister airline Cebgo flew 9.2 million passengers during the six-month period, 8.2 percent more than only 8.5 million customers in 2014.
Airline-ticket prices fell in January this year, as the Civil Aeronautics Board decided to scrap the fuel surcharge from airfares due to the declining jet fuel prices in the international market. Cebu Air itself saw its fuel expenses dropping by 21.5 percent to P9.16 billion.
Data from the International Air Transport Association (Iata) showed jet fuel costing $63.5 per barrel as of July 31, down 14 percent from the preceding month and 47.4 percent less than the year-ago price.
The airline noted, however, that costs would have been lower if not for the increase in long-haul
operating expenses and the impact of foreign-currency adjustments.
As of June 30, the group operated an extensive route network serving 56 domestic destinations and 42 international routes, with a total of 2,631 scheduled weekly flights. It has a fleet of 55 aircraft, comprising of 10 Airbus A319, 31 Airbus A320, six Airbus A330 and eight ATR 72-500 aircraft. Shares of Cebu Air ended on Friday’s trading at P94.15 apiece.