Cebu Pacific passenger volume in 2013 up 8.3% but short of 15M target

Cebu Air Inc., Cebu Pacific, served fewer passengers than its target of 15 million last year, data from the airline shows.

 

According to statistics released by Cebu Pacific, the budget airline flew 14.35 million passengers in 2013, up 8.3 percent from the 13,25 million it served in 2012.

 

It flew 11.04 million passengers on its domestic flights, or 7.6 percent more than the 10.26 million served in 2012.

The volume of passengers on its international flights grew too, 3.31 million in 2013 against 2.89 million the previous year, a 10.7-percent increase.

 

The airline increased its seat capacity by 9.2 percent to 17.52 million seats with the purchase of brand-new aircraft bringing its fleet to 48 Airbus aircraft. With more seats, Cebu Pacific had a lower load factor of 81.9 percent last year against 82.6 percent in 2012.

 

The shortfall in passenger volume was attributed to flight cancellations brought by bad weather like that brought by Typhoon Yolanda in November, and mishaps involving two Cebu Pacific planes.

 

Cebu Pacific has set aside $15 million for the acquisition of 100 percent of low-cost carrier Tiger Airways Philippines through a strategic alliance that would create the biggest network of flights in the region.

 

CebuPacific president and chief executive officer Lance Gokongwei ealier said the budget airline is spending $7 million to buy the 40-percent share held by Tiger Airways Singapore Pte Ltd and $8 million for the 60 percent owned by Filipino investors in Tigerair Philippines.

 

Tigerair Singapore and Cebu Pacific entered into a strategic alliance agreement because of the proposed sale. — JDS, GMA News