July 19, 2018, 12:03 am
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Carrier’s net down on peso, fuel cost

Low-cost carrier Cebu Air Inc. (CEB) yesterday reported a 44 percent decline in its net income forthe first half of the year to P4.33 billion,from P7.68 billion a year earlier, due to higher expenses on the back of high prices of jet fuel and a weak peso. 

CEB’s operating expenses rose by 16.6 percent to P29 billion in the first six months of 2017, from P24.9 billion in the comparable period last year.

“The increase was primarily due to the rise in fuel prices in 2017 coupled with the weakening of the Philippine peso against the U.S. dollar,” CEB said. 

Meanwhile, its revenues went up by 7.7 percent to P35.66 billion in January to June this year, from P33.09 billion in the same period last year, driven by growth in passenger, cargo and ancillary revenues.

Passenger revenues climbed 5.3 percent to P26.6 billion, mainly attributable to the 4.6 percent hike in average fares to P2,637 for the six months ending June 30, 2017, from P2,522 in the same period last year, augmented by the slight increase in passenger volume by 0.7 percent.

CEB said cargo revenues jumped 21.9 percent to P2.071 billion for the six-month period, from P1.7 billion a year ago, following an increase in the volume of cargo transported this year.

Ancillary revenues rose 14 percent to P6.965 billion in the first semester, from P6.110 billion in the comparable period last year, driven by improved online bookings, pricing adjustments and a wider range of ancillary revenue products and services.

As of end-June, CEB’s network covers 66 domestic and 38 international routes, with a total of 2,597 scheduled weekly flights.
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