Airline News
Cebu Pacific looking to become transfer airline; turns record profit in 2Q
August 19th 2014
Cebu Pacific Air (CEB) has surprised analysts with a record profit of PHP3.014 billion (US$68 million) in first-half 2014, up sharply from PHP257 million (US$6 million) in the year-ago period. Read More »
The LCC has reported a 19.7% increase in passenger numbers to 4.7million in second-quarter 2014, resulting in a 1.4 points load factor improvement to 88.2%. Most importantly, yields were up 13% year-on-year.
CEB has benefitted from the consolidation in the Philippine domestic market that has seen rival carriers Philippine Airlines and AirAsia Philippines dramatically reduce capacity and competitor Zest Air exit the market.
Against analysts’ expectations, CEB’s long-haul LCC model has delivered robust results in the second quarter and has prompted the airline to explore better ways of positioning CEB as a LCC transfer airline. Manila-based CEB is particularly interested in providing better transfer connectivity from its North- and East-Asian markets onto its long-haul LCC services to Dubai, Kuwait and Sydney.
CEB is planning to launch new LCC services with its 436-seat A330-300 fleet to Saudi Arabia, Sharjah (UAE) and Hawaii later this year.
