Cebu Pacific flights
Cebu Air Inc. posted a 47.6-percent decline in profit to PhP3.62 billion in 2011 amid higher fuel costs. The budget airline’s operating expenses in 2011 climbed 34 percent to PhP30.4 billion as fuel costs rose 55 percent to PhP15.22 billion. Fuel costs make up 50 percent of its expenses.
Revenues were up by 16.7 percent to PhP33.93 billion brought about by improving growth in passenger traffic and ancilliary products.
“Amid this challenging cost environment, the company was able to sustain robust Ebitda [earnings before interest, taxes, depreciation and amortisation] and pre-tax core income margins of 23.3 percent and 9.9 percent, respectively,” the company said.
Cebu Pacific is expanding its fleet to 53 aircraft by end-2014 from 37 to increase flight frequency and add new routes. The airline has entered into operating leases for four brand-new Airbus A330 aircraft. These A330s, which are part of the fleet expansion, will be delivered between 2013 and 2014.
The A330 can carry as many as 400 passengers and will allow the company to embark on flights that are within 11 hours from the Philippines.