Cebu Pacific reported a net income of P853.5 million for 2014, up 66.7 percent from the P511.9 million recorded a year earlier, as the increase in its number of flights boosted passenger volume growth.
Cebu Pacific said it generated revenues of P52 billion last year, 26.8 percent higher than the P41 billion revenues earned in 2013.
The budget carrier said passenger revenue last year grew 26.9 percent to P40.188 billion from P31.7 billion in 2013, as passenger volume grew by 17.5 percent to 16.9 million from 14.4 million in the previous year.
Cebu Pacific said the number of flights went up 6.9 percent year-on-year as it added more aircraft to its fleet, particularly its acquisition of wide-body Airbus A330 aircraft with a configuration of more than 400 all-economy class seats.
The number of aircraft increased from 48 as of December 31, 2013 to 52 at the end of 2014, including three brand-new Airbus A330 aircraft delivered during the year.
An increase in average fares by 8 percent to P2,382 in 2014 from P2,206 in 2013 also contributed to the improvement of revenues, the airline said.
The airline also said that cargo revenue grew by P536.6 million or 20.6 percent to P3.1 billion in 2014 from P2.6 billion a year earlier as the volume of cargo transported increased.
The Group incurred operating expenses of P47.8 billion last year, 23.9 percent higher than the P38.6 billion operating expenses recorded for 2013 as a result of its expanded long-haul operations and overall growth in seat capacity from the acquisition of new aircraft.
Flying operation expenses rose 20.4 percent to P26.1 billion last year from P21.7 billion charged in 2013.
Aviation fuel expenses grew by 18.9 percent to P23.2 billion due to the higher volume of fuel consumed as a result of the increased number of flights.
The weakening of the Philippine peso against the US dollar — as referenced by the depreciation of peso to an average of P44.40 per US dollar in 2014 from an average of P42.46 per US dollar a year earlier based on the Philippine Dealing and Exchange Corp. (PDEx) weighted average rates — also contributed to the increase.
The rise in aviation fuel expenses, however, was partially offset by the reduction in aviation fuel prices, as referenced by the decrease in the average published fuel MOPS price of $112.48 per barrel in the twelve months ended December 31, 2014 from $122.97 average per barrel in the same period last year.
The company operates a fleet of 48 aircraft, consisting of 10 Airbus A319, 28 Airbus A320, eight ATR 72-500 and two Airbus A330 aircraft.