Cebu Pacific sees share in air travel market rising to 60%

Low-cost carrier Cebu Pacific looks to close the year holding 60 percent of the domestic market, unshaken by the 33 percent reduction in its profit in the nine months to September.

-  ELIJAH FELICE ROSALES

Cebu Pacific's parent Cebu Air Inc. said its net income declined to P3.37 billion as of September, from P5.03 billion a year ago, on the double whammy of spiking costs and a weak peso.

Although revenue grew by 11 percent to P74.53 billion, expenses also climbed by 13 percent to P68.84 billion, as almost every expenditure became higher for Cebu Pacific.

For instance, Cebu Pacific's flying cost increased by 12 percent to P28.71 billion, as the airline invested more to sustain its larger business. The peso has also traded above 57 to $1 recently, and this is hurting the carrier given that at least 60 percent of its expenses are paid in dollars.