Cebu Pacific ’14 net profit rose 66.7%

Cebu Pacific Air, the country’s biggest budget carrier, said net income last year rose 66.7 percent, following a bump in passenger volume and revenue following the acquisition of the Philippine unit of Singapore’s Tiger Airways.

Cebu Pacific, which already corners more than half of all domestic flights, said in a stock exchange filing that net income last year hit P853.5 million compared to P511.95 million in 2013.

The gains came as revenues hit P52 billion, up 26.8 percent, bolstered by a 17.5-percent growth in passenger volume.

The carrier during the period also added new routes that included Japan and Australia.

Cebu Pacific, a unit of Gokongwei-led JG Summit Holdings Inc., carried 16.9 million passengers last year, with a chunk of that contributed by its early 2014 acquisition of 100 percent of Tiger Airways Philippines for $15 million.

Passenger sales continue to provide most of the company’s revenues, with this measure growing 27 percent to P40.2 billion last year.

Strong demand also allowed the company to increase ticket rates as its average fare rose 8 percent to P2,382 last year.

Cebu Pacific ended the year with 52 planes, which includes the addition of three brand new Airbus A330s, mainly used for the company’s long-haul routes.

Cebu Pacific added that it flew 6.9 percent more flights in 2014.

Its ancillary revenues such as baggage fees likewise rose 28.7 percent to P8.66 billion.

“The Group began unbundling ancillary products and services in 2011 and significant improvements in ancillary revenues were noted since then. Improved online bookings, together with a wider range of ancillary revenue products and services, also contributed to the increase,” Cebu Pacific said. Miguel R. Camus

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