Cebu Pacific's net income falls 18 pct in first half
MANILA, Philippines - Budget carrier Cebu Air Inc. (Cebu Pacific) reported a 18% drop in net income to P1.414 billion in the first half, due to foreign exchange losses and higher interest expenses
Cebu Pacific said its revenues jumped 10% to P21.726 billion in the first half of the year, as it posted more revenues from passenger and cargo.
In the January to June period, Cebu Pacific said the number of passengers went up by 8% to 7.5 million, while passenger revenues rose 8.5% to P16.977 billion.
The airline said cargo revenues went up 8.7% to P1.226 billion in the January to June period, while ancillary revenues, particularly from online bookings, increased by 19.5% to P3.524 billion.
However, Cebu Pacific suffered P1.349 billion in net foreign exchange losses, with the peso weakening to P43.2 to $1 in the first half of the year. During the same period last year, the exchange rate was P41.05 to $1.
"The company’s major exposure to foreign exchange fluctuations is in respect to the US dollar-denominated long-term debt incurred in connection with aircraft acquisition," the airline said.
Cebu Pacific said its expenses increased by 3.2% to P18.88 billion in the first half of the year, on higher expenses for general and administrative, reservation and sales, flying operations, repairs and maintenance, aircraft and traffic servicing, among others.