MANILA, Philippines - The net income of low cost carrier Cebu Air Inc. (Cebu Pacific) of taipan John Gokongwei fell 29 percent in the first half of the year due to higher flying operation expenses arising from more expensive oil prices in the world market.
In a disclosure to the Philippine Stock Exchange (PSE), Cebu Pacific reported that its net income amounted to P1.735 billion from January to June this year or P705 million lower than the P2.44 billion earnings booked in the same period last year.
The airline reported that expenses surged 24.7 percent to P18.199 billion in the first half of the year from P14.595 billion in the same period last year. Flying operations expenses jumped 28 percent to P10.516 billion from P8.209 billion.
Cebu Pacific also reported higher expenses for aircraft and traffic servicing, repairs and maintenance, aircraft and engine lease as well as passenger service.
On the other hand, Cebu Pacific reported that its revenues went up 17.9 percent to P19.729 billion in the first half of the year from P16.73 billion in the same period last year.
The airline said passenger revenues grew 12.9 percent to P15.653 billion from P13.865 billion on the back of the 17.2 percent rise in passenger volume to 6.9 million in the first semester of the year from a year-ago level of 5.9 million.
Cebu Pacific said the number of flights increased 18.1 percent as a result of the additional aircraft operated to 38 as of end-June this year from only 33 as of end-June last year.
However, Cebu Pacific said the increase in revenues was partially offset by the 3.7 percent reduction in average fares to P2,257 this year from P2,343 last year.