Cebu Pacific sets 2015 capex at P13.1B

Cebu Air Inc. ( Cebu Pacific) raised its capital expenditure commitments by 12.3 percent for the acquisition of aircraft fleet as part of its massive fleet renewal program.

Cebu Pacific said in a report to the Securities and Exchange Commission that its capital expenditure commitment for the acquisition of aircraft would amount to P13.1 billion this year or P1.44 billion higher compared to P11.66 billion in 2014.

Likewise, the low cost carrier also increased its investment commitments over the next five years by 3.1 percent to P67.23 billion instead of P65.2 billion.

As part of its fleet renewal program, Cebu Pacific is scheduled to take the delivery of seven airbus A320 and 30 A321 neo aircraft between this year and 2021.

As early as 2007, the budget carrier entered into a purchase agreement with Airbus S.A.S covering the purchase of 10 A320 aircraft and the right to purchase five option aircraft. It exercised its option to purchase the five additional aircraft in 2009 and placed an order for five ad- ditional option aircraft.

Cebu Pacific exercised its option to purchase five additional option Airbus A320 aircraft in 2010 and entered into a new commitment to purchase two A320 aircraft to be delivered between 2011 and 2014.

In 2011, the airline exercised its options for seven A320 to be delivered in 2015 to 2016 and entered in a new commitment to purchase firm orders of 30 new A321 NEO Aircraft and ten addition option orders.

It also entered into an agreement with United Technologies International Corp. Pratt & Whitney Division in 2012 to purchase new PurePower ® PW1100G- JM engines for its 30 firm and 10 options A321 NEO aircraft to be delivered beginning 2017.

The airline has signed a forward sale agreement with Las Vegas-based Allegiant Air for the sale of its six Airbus A319 to be delivered until 2016.

Cebu Pacific’s 55-strong fleet is comprised of 10 Airbus A319, 31 Airbus A320, six Airbus A330, and eight ATR 72-500 aircraft.

The airline reported a 1,255 percent jump in net income to P2.22 billion in the first three months of the year from P161.16 million in the same period last year. Revenues increased 20.7 percent to P14.2 billion from P11.76 billion.

Passenger revenues went up by 22.1 percent to P10.81 billion from P8.85 billion as volume of passengers rose 13 percent to 4.3 million compared to 3.8 million while the number of flights increased by 14.3 percent with the arrival of additional aircraft.

During the period, Cebu Pacific said average fares went up 8.1 percent to P2,525 from P2,336.

It also managed to limit the increase in operating expenses to one percent to P11.37 billion in the first three months of the year from P11.25 billion in the same period last year.

Cebu Pacific operates an extensive route network serving 55 domestic routes and 36 international routes with a total of 2,597 scheduled weekly flights.