Cebu Pacific keeps 12-M passenger target

Tuesday, July 19, 2011

GOKONGWEI-led Cebu Pacific said it is on track to meet its 12-million passenger target in 2011 after it flew over 3.1 million people from April to June this year, a 15 percent increase from 2.7 million during the same period last year.

Rival Philippine Airlines (PAL), meanwhile, declined to disclose second quarter figures as it dominated international traffic from January to March, quoting reports from the state-run Civil Aeronautics Board (CAB).

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The number of Cebu Pacific international passengers stood at 683,000, a 21 percent increase, while the airline's domestic passengers rose by 13 percent to 2.43 million, compared to the second quarter of last year.

Foreign passengers increased in the second quarter, owing to our increased flight frequencies and direct flights from international destinations to and from Manila, Cebu and Clark, according to Cebu Pacific vice president for marketing and distribution Candice Iyog.

PAL said increased demand across its international routes pushed passenger volume at 1.06 million in the first quarter, up seven percent from 942, 144 passengers covering the same period.

Cebu Pacific achieved a record 89 percent load factor in second quarter, surpassing the load factors in the first quarter of 2011 (87 percent) and second quarter of 2010 (88 percent).

"April and May are seasonally the strongest in domestic travel, and we will remain consistent in growing the market so every Juan gets the chance to fly," Iyog said.

Meanwhile, passengers to and from North Asia grew by 13 percent, led by Taiwan (up by 66 percent), South Korea (up by 42 percent) and China (up by 38 percent).

While anticipating for the delivery of brand-new aircraft either in late September or October this year, Cebu Pacific said it is slated to begin its Tawi-Tawi to Zamboanga flights, as well as its Cagayan de Oro-Iloilo service on October 14.

PAL's most traveled destinations in the region are Singapore, Bangkok, Hong Kong, and South Korea, among others.

The United States also contributed a "large chunk" of the airline's revenues, while other sectors added to the carrier's positive passenger numbers.

Aside from increased passenger demand in the international sector, PAL attributed the first quarter performance to enhanced marketing and promotional strategies and the market's renewed appetite for travel.

While these are bright spots for PAL, it remains cautious in view of volatile fuel costs, slowdown in Japan traffic due to tsunami disaster in March, and the flight restrictions imposed by the US Federal Aviation Administration.

Shares in Cebu Pacific slightly dipped on Tuesday at P86.05 each from P86.20 the previous day, while PAL Holdings Inc., the parent company of the Lucio Tan-led carrier went up 10 centavos to P5 per share from P4.90 last Monday. (Sunnex)