LOW-COST carrier Cebu Pacific’s net income more than doubled in 2016 on strong demand for budget air travel and robust growth in its ancillary services, the airline company announced on Friday.
Cebu Pacific said net income in 2016 grew by 122 percent to P9.8 billion from P4.4 billion in 2015.
“2016 was a great year for CEB as we continue to enable everyJuan to fly to more destinations around the Philippines and to key destinations in Asia, the Middle East, Australia and the US,” JR Mantaring, vice president for corporate affairs of Cebu Pacific, said in a statement.
Total revenues, which include those of CEB cargo services and of wholly owned subsidiary Cebgo, jumped to P61.9 billion from the previous year’s record of P56.50 billion, CEB said in a disclosure to the Philippine Stock Exchange.
Other than strong demand for low-cost air travel, revenue growth was also attributed to higher income from
ancillary services, which include baggage fees, on-board meals and merchandise, the company said.
In 2016, CEB flew to 36 domestic and 30 international destinations through 102 routes and more than 2,820 flights weekly.
It also launched its direct service between Kalibo and Incheon, and its first US destination, Guam, and opened its branch office in South Korea to boost promotional efforts in the Korean market.
It also teamed up with some of the world’s leading low-cost carriers (LCC) to form Value Alliance, the world’s largest LCC alliance, which aims to provide greater value, connectivity and choice for travel throughout Southeast Asia, North Asia and Australia.
CEB capped 2016 with 57 aircraft, and added two ATR 72-600 aircraft in February this year.
CEB expects to take delivery of more aircraft this year to end 2017 with 63 aircraft.
“CEB remains committed to further increase inter-island connectivity within the Philippines to promote trade and tourism and help more people connect with their families and friends all around the world, while consistently providing our trademark best value fares,” Mantaring said.