Cebu Pacific posts 2-digit growth in passenger volume

MANILA, Philippines - Publicly-listed Cebu Air Inc. (Cebu Pacific) of taipan John L. Gokongwei Jr. booked a double-digit growth in volume of passengers on the back of robust domestic and international operations brought about by aggressive sales promotions last year.

Candice Iyog, vice president for marketing and distribution of Cebu Pacific, said the low cost carrier flew 13.26 million passengers last year or 1.33 million more than then 11.93 million passengers serviced in 2011.

Cebu Pacific was looking at servicing 14 million passengers last year but the target was derailed after the Department of Transportation and Communications (DOTC) adopted new schemes, including the new slotting system to decongest the Ninoy Aquino International Airport (NAIA).

Iyog attributed the increase to strategic expansion in its domestic and international operations after launching flights from Manila to Hanoi, Siem Reap and Xiamen as well as from Cebu to Bangkok and Kuala Lumpur last year.

Cebu Pacific also pioneered direct flights from Iloilo to Hong Kong and Singapore.

Data showed that additional flights coupled with seat sales and strengthened tourism promotions pushed passenger volume from Brunei up by 32 percent, followed by Vietnam by 30 percent, China by 29 percent, Taiwan by 22 percent, and Malaysia by 21 percent.

On the other hand, Cebu Pacific also launched 10 domestic routes including flights from Davao to Dipolog and from Zamboanga to Cagayan de Oro.

Iyog said domestic passengers from the airline’s Cebu hub grew by 20 percent, while its Davao hub grew by 16 percent.

“It is very fulfilling for us in the Cebu Pacific team to continue giving travellers new destinations, the lowest fares and direct flight options. The Philippines’ momentum when it comes to tourism buzz will be supported by Cebu Pacific’s expansion to more regions in the world,” she added.

The airline is slated to launch twice weekly Manila-Bali (Denpasar) flights on March 16 and is set to start its long-haul operations with its first Manila to Dubai flight on Oct. 7.

Cebu Pacific president and chief executive officer Lance Y. Gokongwei bullish about the prospects of the airline industry amid intense completion, overcapacity in the domestic market, and rising price of aviation fuel.

“We are confident of the trajectory of growth,” Gokongwei stressed.

He pointed out that they are bullish about the industry’s outlook despite the continuing challenges, including increased competition as well as high price of aviation fuel.

Latest data showed that the net income of Cebu Pacific inched up 2.4 percent to P2.27 billion in the first nine months of last year from P2.21 billion in the same period in 2011 as revenues jumped 14 percent to P27.87 billion in 2012 from P24.46 billion.

The budget airline is confident that the volume of passengers would continue to grow this year with the launch of several long-haul destinations led by the Manila to Dubai flights starting Oct. 7.

The airline currently flies to 21 international destinations as well as 32 domestic destinations through its six strategically located hubs which include Manila, Cebu, Clark, Kalibo, Iloilo, and Davao.

Cebu Pacific currently has a fleet of 41 aircraft including 23 Airbus A320s, 10 Airbus A319s, and eight ATR 72-500 and expects the delivery of seven A320 and two A330s this year.

The airline is scheduled to take the delivery of 19 more A320s and 30 A321 neo aircraft between 2013 and 2021.