Saturday, 27 June 2009

"Recession" update--Cebu Pacific sees revenues rising by up to a fifth


Gokongwei-led Cebu Pacific Air will spend P5 billion on new aircraft this year, expecting revenues to go up by almost a fifth due to higher passenger traffic and additional routes.

At the sidelines of JG Summit’s Holdings Corp.’s annual stockholders’ meeting on Friday, Cebu Pacific President and Chief Executive Officer Lance Y. Gokongwei told reporters this year’s capital expenditures for the budget airline is just the same level as last year’s.

Cebu Pacific has purchased two airbus A320s and two ATR aircraft, while two more ATRs will be delivered this year. The airline now has a fleet of 29 aircraft.

"We have placed orders for 15 more planes which will be delivered in four to five years and five additional orders will still depend on the demand in the next few years," Mr. Gokongwei said.

The budget carrier is confident it will record a 15% to 20% hike in revenues this year.

"We experienced an increase of 30% in passenger traffic in the first quarter of this year and we expect this trend to continue for the rest of the year," Mr. Gokongwei said.

Cebu Pacific claims a market share of 49.1% on operational routes in the Philippine airline industry.

It reported a 12% increase in passenger traffic for North Asia routes over the past twelve months ending May 31. Cebu Pacific has flights to China, Japan and South Korea, and is looking into adding frequencies to China and Japan with the delivery of more aircraft in the next three years.

Cebu Pacific, now said to be Asia’s third largest low-cost airline, flies to 15 cities in Asia and 32 domestic destinations using 21 Airbus and eight ATR aircraft, with an average fleet age of less than two years.

1 comment:

  1. Cebu Pacific is really expanding fast and increasing their traffic. I think it's a positive development for the Philippines.