Cebu Pacific off to good start in second half

MANILA, Philippines — The country’s largest carrier grew its passenger volume to more than 2.2 million in July, putting it on pace for a better second half as it tries to bounce back from its net loss.

Based on its traffic report, Cebu Pacific hiked its passenger count by five percent to 2.22 million in July from 2.12 million a year ago, propelled by the strength of the domestic market.

Cebu Pacific’s domestic traffic went up by nine percent to 1.73 million, erasing the nine-percent decline in international volume to 485,000.

The airline kept its passenger volume on expansion mode this year, up by four percent to 16.72 million in the seven months to July. Domestic passenger count increased by six percent to 12.6 million, while international segment picked up by one percent to 4.12 million.

Cebu Pacific president and chief commercial officer Alexander Lao said the airline had expected the decline in international volume in July. The carrier slashed seat capacity for foreign flights by 17 percent in line with weaker demand.

“We delivered continued passenger growth in July supported by a strong rebound in the domestic market,” Lao said.

“Domestic traffic grew 9.1 percent year-on-year reflecting resilient demand across our network, (but) international traffic was lower, aligned with planned capacity reductions, which resulted in stronger load factors,” he added.

The airline owned by the Gokongweis expects third quarter demand to be leaner, so it is leasing one of its Airbus A320neos to flag carrier Vietnam Airlines until Sept. 7.

As the holiday season approaches, Cebu Pacific is preparing to increase flight capacity again. It will add Cebu flights to Ho Chi Minh by Oct. 26; Shanghai by Nov. 17 and Nagoya by Nov. 19.

On top of this, the carrier will restore weekly flights between Clark and Hanoi, a service that had to be suspended earlier this year to control fuel consumption. Nov. 23 will also mark Cebu Pacific’s reentry into Xiamen from Manila, as the airline reinforces its Chinese network.

Cebu Pacific has a lot of work to do to nurse its P5.89-billion net loss in the first half, dragged by a 23-percent jump in expenses as jet fuel prices soared.

The airline will rely on its industry-leading fleet of 102 aircraft and its widest domestic network of 36 local destinations, paired with 25 foreign cities in Asia, Australia and the Middle East.