Cebu Pacific operator says net income plunge 71% on forex losses in first nine mos.

Cebu Air Inc., operator of budget airline Cebu Pacific, on Tuesday said net income plummeted by 71 percent on P1.53 billion worth of booked foreign exchange losses from its long-term US dollar denominated debt the company used to buy new airplanes.

 

The foreign exchange losses came from a weaker peso that dropped to P43.54 per dollar in the first nine months from P41.05 as of end 2012.

 

Net income totaled P664.1 million in January to September, down P1.61 billion from P2.27 billion year earlier, the company noted in a disclosure to the Philippine Stock Exchange.

 

Revenues rose by 9.7 percent to P30.58 billion from P27.87 billion in the same comparable period, reflecting P23.59 billion in passenger revenues – up 8.2 percent – and P1.88 billion in cargo revenues – up 8.1 percent.

 

Passenger volume grew 11.6 percent to 10.9 million, compared with 9.8 million year-on-year, as the  number of flights went up 7.5 percent – lifted by the commissioning of eight new airplanes that brought to 47 its fleet of aircraft.

 

Ancillary revenues from online booking were up 18 percent to P5.1 billion from P4.33 billion.

 

Operating expenses rose 8 percent to P28.41 billion from P26.31 billion, with expenses related to seat capacity expansion was partially offset by a stronger the peso against the US dollar.

 

Repairs and maintenance amounted to P2.891 billion, up 13.7 percent as overall the number of flights increased, and aircraft and engine lease expenses were up 2 percent to P1.594 billion. – VS, GMA News