The operator of budget carrier Cebu Pacific saw earnings dip by 50.6 percent last year amid challenges such as the closure of a popular tourist destination, rising fuel prices and increased competition.
In a statement, Gokongwei-owned Cebu Air Inc. said profits fell to P3.9 billion from P7.9 billion a year earlier even as revenues climbed 9 percent to P74.1 billion from P68.03 billion.
Passenger revenues, in particular, hit P54.3 billion, 9 percent higher than the P49.93 billion recorded in 2017. The listed airline carried 20.3 million passengers last year, up 3 percent from 2017’s 19.7 million.
The cargo business also witnessed double-digit growth at 19 percent, the firm said.
“The growth in CEB’s (Cebu Air’s stock symbol) 2018 business came amidst a challenging environment with high fuel prices, a volatile Philippine peso, rising interest rates, increased competition, the six-month closure of Boracay, and operational limitations in the country’s key airports,” the firm said.
Michael Ivan Shau, Cebu Pacific chief operations officer, said the carrier expected to bounce back due to fleet and network expansions.
“2019 is definitely the year we accelerate our growth,” Shau said in a statement.