CEB posts 10% revenue gain but profit falls 19% to
Cebu Pacific (CEB) hauled in R68.029-billion revenues for 2017, up 9.9% from the preceding year and netted R7.908 billion earnings, down 18.9% in the same period, as operating expenses shot up 16.6% to R57.895 billion as fuel prices rose and the airline’s capacity increased as it acquired new aircraft.
The airline’s passenger revenues rose 7.2% to R49.931 billion due to the 3.2% growth in passenger volume to 19.7 million as the number of flights increased 3.6% in 2017 when CEB added more aircraft to its fleet.
The number of aircraft increased from 57 as of year-end 2016 to 61 at the end of last year. The average fare likewise rose 3.8% to R2,529, driving revenue further.
Cargo revenues grew 29.2% to R4.603 billion following the increase in the cargo volume and yield in 2017.
Ancillary revenues likewise went up 14.9% to R13.494 billion as a result of the 3.2% increase in passenger traffic and 11.3% increase in ancillary revenue per passenger, driven by improved online bookings, pricing adjustments and introduction of new ancillary revenue products and services.
As of the end of last year, CEB’s consolidated balance sheet remains solid, with net debt to equity of 0.64 [total debt after deducting cash and cash equivalents (including financial assets held-for-trading at fair value and available-for-sale assets) divided by total equity].
Consolidated assets grew to R109.077 billion from R100.514 billion as of end 2016 as CEB added aircraft to its fleet.
CEB operates a fleet of 61 aircraft composed of one Airbus A319, 36 Airbus A320s, eight ATR 72-500s, eight ATR 72-600s and eight Airbus A330s.
It operates its Airbus aircraft on both domestic and international routes and operates the ATR 72-500 and ATR 72-600 aircraft on domestic routes, including destinations with runway limitations.
The average aircraft age of its fleet is 5.1 years as of December 31, 2017.
The airline services 76 domestic routes and 37 international routes with a total of 2,485 scheduled weekly flights.
It operates from seven hubs, including the Ninoy Aquino International Airport (NAIA) Terminal 3 and Terminal 4 in Pasay City; Mactan-Cebu International Airport ; Diosdado Macapagal International Airport (DMIA); Davao International Airport; Ilo-ilo International Airport, Kalibo International Airport and Laguindingan Airport.
Meanwhile, CEB and Cebgo reminded all passengers to be at the airport at least two hours before departure for domestic flights and three hours for international flights to allow ample time for check-in, go through security and immigration checks, and process pre-departure requirements.
CEB Domestic Check-in counters are open three hours before the scheduled time of departure and four hours for international flights. All check-in counters close 45 minutes before the scheduled time of flights, except those exiting Dubai (one hour) and Shanghai (50 minutes).
Cebu Pacific has deployed roving check-in agents in all of the Philippine airports the carrier operates in, including the NAIA Terminal 3 and Terminal 4. The agents are equipped with iPads with the Levarti MAX Airport application. This allows CEB terminal personnel to remotely check-in passengers, assign seats, and facilitate payment for baggage and other ancillary services.