GUAM—The operator of Cebu Pacific expects to make profits this year for its long-haul business, with planned expansion of operations in the Middle East and the US.
“It’s going to be profitable this year for the long haul operations. We incurred a small net loss last year,” Cebu Air Inc. general manager for long haul division Alex Reyes told reporters after the launch of its Manila-to-Guam flight.
Long-haul business contributes about 12 percent to the total revenue of Cebu Pacific.
Guam is Cebu Pacific’s sixth long-haul destination after Dubai, Sydney, Kuwait, Riyadh and Doha, Qatar.
Passengers flown on Cebu Pacific’s long-haul routes jumped 146 percent in 2015, on the back of increased presence in Australia and the Middle East.
Reyes said Cebu Pacific was the only low-cost carrier operating the Manila-to-Guam route, offering fares at 48 percent lower compared with the other airlines.
The total seat capacity between Manila and Guam is currently at 5,900 per week, on top of the weekly 1,440 seats that will be added to the market by Cebu Pacific.
Reyes also said the airline expects to launch the Manila-to-Hawaii route as soon as possible.
“As soon as we get all of the approvals in place, we will make an announcement. The hard part for us is matching the slots availability here in Manila as well as the slots that are available on the other side. That’s always the difficult thing,” Reyes said.
He also said Cebu Pacific was looking at expanding operations in the Middle East, especially in Jeddah and Riyadh.
“Obviously we are interested in adding destinations in Saudi Arabia because of the 1.2 million Pinoys there,” Reyes said.
Reyes said passengers should “expect more travel opportunities from Cebu Pacific” with the arrival of over 40 more brand-new aircraft in the next five years.
CEB expects delivery of three more brand-new Airbus A320, 30 Airbus A321neo and 16 ATR 72-600 aircraft between 2016 and 2021.
Cebu Pacific’s 57-strong fleet is comprised of 8 Airbus A319, 35 Airbus A320, 6 Airbus A330, and 8 ATR 72-500 aircraft.
Cebu Pacific recorded a net income of P3.56 billion in the first nine months of the year, up 71 percent from last year’s P2.08 billion.
Revenues amounted to P42.26 billion in the nine-month period, or 9.9 percent higher than P38.45 billion posted in the same period last year.