Cebu Air Inc. said Friday net profit grew 64 percent in the first semester of the year on higher passenger traffic and lower fuel expenses.
The operator of budget carrier Cebu Pacific and Cebgo, formerly Tigerair Philippines, said net income amounted to P5.2 billion in the January-to-June period from a P3.18-billion profit year-on-year.
The CEB Group generated revenues of P29.51 billion in the first six months of the year, up 10 percent from P26.72 billion on year.
Passenger revenues rose 9.4 percent to P22.813 billion in six months from P20.85 billion on year.
The airline attributed the higher revenues to the 8.2-percent rise in passenger volume to 9.2 million from 8.5 million in 2014, driven by the increased number of flights in 2015.
The number of flights grew 11 percent on year after the group added more aircraft to its fleet, especially its acquisition of wide-body Airbus A330 with a configuration of more than 400 all-economy class seats.
Cargo revenues rose 11 percent to P1.601 billion in the January-to-June period from P1.437 billion on year following the increase in the volume of cargo transported in 2015.
The group incurred operating expenses of P23.469 billion, down 1.2 percent from P23.76 billion on year.
It attributed the decrease to the substantial reduction in fuel costs incurred during the period following the sharp decline in global jet fuel prices.
Aviation fuel expenses fell 22 percent to P9.156 billion from P11.669 billion on year.
The average published fuel MOPS price stood at $71.87 per barrel during the period from $120.93 per barrel in 2014.
The drop in fuel prices, however, was partially offset by the weakening of the peso against the US dollar.
The peso depreciated to an average of 44.55 per US dollar during the six-month period from an average of 44.49 last year.
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