Cebu Air spending P24b for expansion
Cebu Air Inc., the operator of Cebu Pacific and Cebgo, has programmed P24 billion in capital expenditures this year to finance fleet expansion.
The budget airline, owned by the Gokongwei Group, is acquiring an additional 35 aircraft until 2019 for domestic and international flights expansion.
“The additional aircraft will support CEB’s plans to increase frequency on current routes and to add new city pairs and destinations,” Cebu Pacific said.
The group operates a fleet of 59 aircraft, which comprise of 4 Airbus A319, 36 Airbus A320, 7 Airbus A330, 8 ATR 72-500 aircraft and 4 ATR 72-600.
Cebu Pacific group operates 62 domestic and 41 international routes with a total of 2,870 scheduled weekly flights.
Cebu Pacific posted a net income of P1.28 billion in the January-to-March period from the P4.04 billion last year.
Revenues amounted to P16.86 billion at end March, 4.7 percent higher than P16.11 billion last year.
Passenger revenues rose P2.1 percent to P12.28 billion in the first three months ending March from P12.02 billion in the same period last year.
The increase was mainly attributable to the 2.6 percent increase in the average fares to P2,551 for the three months from P2,486 last year, which was partially offset by the slight decrease in passenger volume by 0.5 percent.
The company’s cargo revenues increased 21.3 percent to P1.01 billion from P836.43 million last year.
Cebu Pacific group incurred operating expenses of P14.3 billion fin the three months ending March, higher by 20.3 percent from P11.89 billion on year.