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Tag: CEB

  • Cebu Pacific profit surges by 143%

    Cebu Pacific profit surges by 143%

    The operator of budget airline Cebu Pacific saw its net income surge by 143 percent in the first nine months of the year as earnings were lifted by strong passenger bookings and stable costs.

    Cebu Air Inc., a subsidiary of the Gokongwei family’s JG Summit Holdings, said on Tuesday that net income from January to September hit P6.75 billion versus P2.78 billion during the same period last year.

    Cebu Air has been ramping up capacity to meet the rising demand for air travel. Passenger revenue during the nine-month period went up 17.9 percent to P46.6 billion. Some 16.7 million flyers used Cebu Air during the period, representing a growth of 10.4 percent.

    Moreover, average fares went up 6.7 percent to P2,794, the budget airline said. Other revenue sources such as cargo and ancillary also went up 5.3 percent and 22.2 percent, respectively.

    Overall, Cebu Air’s revenue increased by 17.7 percent to P63.62 billion.

    Cebu Air said expenses were mostly kept in check during the period. Operating expenses increased 7.8 percent to P53.81 billion, in line with expanded operations.

    Flying operations alone went up 2.5 percent to P22.56 billion. Cebu Air said this was mainly due to pilot training costs as it took delivery of new planes. Fuel expenses also dropped 1.4 percent or P260.67 million during the period.

    For the third quarter alone, Cebu Air posted a net loss of P384.3 million, narrower than the previous year’s loss of P518.43 million. Revenue of P18.92 billion, up 16.7 percent, alongside stable operating costs helped lower losses during the third quarter of 2019.

    Cebu Air ended September with 72 planes. Its fleet was comprised of 31 Airbus A320, seven Airbus A321 CEO, three Airbus A320 NEO, two Airbus A321 NEO, eight Airbus A330, eight ATR 72-500 and 13 ATR 72-600.

    Its network spanned 80 domestic routes and 41 international routes with a total of 2,727 scheduled weekly flights.

  • Cebu Pacific cut flight delays in October

    Cebu Pacific cut flight delays in October

    Budget airline Cebu Pacific recorded minimal flight delays in October as on-time performance went up.

    The Department of Transportation (DOTr) said on Monday that Cebu Pacific posted an on-time performance of almost 85 percent last month, better than the 80.66 percent in September.

    A flight is considered on time if it leaves within 15 minutes of the scheduled departure.

    “The improved OTP is a result of the close cooperation and coordination with concerned government agencies to minimize delays across our network,” Michael Ivan Shau, Cebu Pacific chief operations officer, said in the statement.

    Earlier, flag carrier Philippine Airlines said on-time performance in the Ninoy Aquino International Airport (Naia), the country’s busiest gateway, hit 92 percent for the month of October.

    The DOTr noted in the statement that improved efficiency followed the signing in June of a commitment to decongest Naia and support the development of other gateways, including the Sangley Airport in Cavite.

    “I am happy that months after we signed the pledge of commitment, we continue to see improvements in OTP across the industry. I hope these efforts are sustained to make air travel in the Philippines more efficient and comfortable,” Transportation Secretary Arthur Tugade said in the statement.

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  • Cebu Pacific increases capacity in Clark, Palawan

    Cebu Pacific increases capacity in Clark, Palawan

    Cebu Pacific said it will end the year as the biggest carrier in terms of capacity at the Clark International Airport and the Busuanga and Puerto Princesa airports in Palawan.

    In a statement, the Gokongwei-led budget carrier attributed the increased capacity share in Clark to the direct flights to Guangzhou and Puerto Princesa, as well as between Puerto Princesa and Hong Kong.

    Cebu Pacific said its capacity share at the Clark International Airport will hit 28% by end-2019. The airline mounts 190 flights weekly from this hub to Bacolod, Bohol, Caticlan, Cebu, Davao, Iloilo, Puerto Princesa, Guangzhou, Hong Kong, Macau, Narita and Singapore.

    “Cebu Pacific has taken a measured pace of expansion in Clark, but we have always believed in the potential of Clark. Over the past 12 months, our capacity growth in Clark hit over 90%. With the growth in passenger traffic in Clark, we are bullish that the new routes we launched over the past few months will continue to perform strongly,” Alexander G. Lao, chief strategy officer of Cebu Pacific, was quoted as saying.

    The airline is also set to end the year with 46% total capacity share in Puerto Princesa and the Busuanga Airport. Cebu Pacific mounts 190 flights a week to and from Palawan.

    “We remain confident that Hong Kong will bounce back, and despite current concerns, there is continued demand for travel between Hong Kong and the Philippines. We are confident in the potential of Palawan to grow tourism sustainably, and we will continue to work with our stakeholders in Palawan to better connect the province to the rest of the Philippines and to key tourist catch points in Asia,” Alex B. Reyes, vice-president for commercial at Cebu Pacific, said.

    Cebu Pacific increased capacity by 23% to 19 million seats as of end-September.

    Cebu Air, Inc., the listed operator of Cebu Pacific, said its nine-month profit surged 142% to P6.75 billion, as it added flights and raised average fares.

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  • Cebu Pacific extends China network

    Cebu Pacific extends China network

    Cebu Pacific continues to expand its reach in mainland China with two new direct services between Clark and Guangzhou, Puerto Princesa and Hong Kong, making it the first airline in the Philippines to fly these routes.

    The new routes are in line with the carrier’s plans to expand its route network in China, following the introduction of flights between Shenzen and Manila earlier this year.

    Starting from 11 November, flights between Clark and Guangzhou are scheduled to operate four times weekly (Monday, Wednesday, Friday, Saturday). The flight departs Clark at 2335 while the return flight departs at 0315 on the next day.

    Guangzhou is a wholesalers’ haven for retail and popular consumer goods, making it an ideal destination for e-commerce micro-retailers and startup business people. For leisure travelers, the city appeals to foodies eager to experience world-renowned Cantonese cuisine.

    “With direct air service between Clark and Guangzhou, it will be easier for entrepreneurs and businessmen in the e-commerce space to meet up with suppliers, said Cebu Pacific vice president for commercial Alex Reyes. “They can conveniently attend mega-trade events such as the popular Canton Trade Fair.”

    “Chinese tourists will also gain access to the attractions that Luzon has to offer. From Clark, the Mount Pinatubo adventure trek is within a few hours drive away,” Reyes added.

    Cebu Pacific currently offers 27 flights weekly between the Philippines and mainland China, with direct between Shanghai, Manila and Cebu; as well as Manila and Beijing, Guangzhou, Xiamen and Shenzhen.

    Flights between Puerto Princesa and Hong Kong will start 17 November 2019, and passengers can choose from four weekly flights (Tuesday, Thursday, Saturday, Sunday).

    Flight 5J 5306 departs Puerto Princesa at 1535 on Tuesdays, Thursdays and Sundays; and at 1605 on Saturdays. The return flight, 5J 5307 departs Hong Kong at 1930 on Tuesdays, Thursdays and Sundays; and at 2000 on Saturdays.

    On the same day, CEB will launch its previously announced Clark-Puerto Princesa flight. Together, these two new routes increase capacity to Puerto Princesa by 7%.

    Palawan has consistently made the lists compiled by renowned travel publications of the world’s best and most beautiful islands. Puerto Princesa serves as the gateway to the Puerto Princesa Subterranean River National Park, a UNESCO World Heritage, as well as pristine beaches and other natural attractions such as El Nido, San Vicente and Port Barton.

    With the new Puerto Princesa – Hong Kong service, CEB connects Hong Kong to five destinations in the Philippines, more than any other carrier. Currently, Cebu Pacific flies 55 times weekly between the Philippines and Hong Kong, with direct flights to and from four of the airline’s major hubs–Manila, Cebu, Clark and Iloilo.

  • Cebu Pacific sees Sangley Airport as its cargo fleet hub

    Cebu Pacific sees Sangley Airport as its cargo fleet hub

    Cebu Pacific intends to make the newly constructed Sangley Airport in Cavite the hub of its cargo aircraft fleet, an official of the budget carrier said Tuesday.

    “This will become the hub and base for our two turboprop freighters that we will have in our fleet,” Cebu Pacific vice president for Cargo Division and Cebgo president Alex Reyes told reporters during the airport operations dry run.

    In June, airlines agreed to use Sangley Airport for general aviation, freight turboprop operations, and commercial turboprop operations.

    “Ang commitment po namin sa gobyerno is we will operate both our cargo freighters here in Sangley,” Reyes said.

    Cebu Pacific earlier said it was looking at increasing the contribution of its cargo business to the company’s overall top line, banking on the country’s growing logistics sector.

    In 2018, Cebu Pacific tapped Swiss IPR Conversions Ltd. to convert two of its ATR 72-500 passenger aircraft into cargo planes as demand for air cargo transport is expected to rise with a growing e-commerce sector.

    During the operations dry run, Cebu Pacific’s air freighter landed in Sangley Airport.

    “We will receive our second turboprop in the first quarter of 2020,” Reyes said.

    “Plano po namin is initially we will fly domestically. So marami pong cities that we would want to link with, from Sangley to Visayas and Mindanao for regular cargo operations back and forth,” he said, noting that Cebu Pacific will eventually fly its cargo fleet to international destinations.

    The Department of Transportation has decided to take over the construction of Sangley Airport in response to President Rodrigo Duterte’s order to develop the airport in Cavite by November to decongest the Ninoy Aquino International Airport (NAIA).

    The government tapped Unimaster Conglomeration Inc. as a contractor for the project, valued at P486.028 million.

    Transportation Secretary Arthur Tugade said the airport will be inaugurated in seven days, particularly as general aviation and freight operations hub.

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  • Cebu Pacific to launch direct flights between Puerto Princesa and Hong Kong

    Cebu Pacific to launch direct flights between Puerto Princesa and Hong Kong

    Budget Carrier Cebu Pacific on Wednesday said it will launch in November direct flights between Puerto Princesa, Palawan and Hong Kong “to better connect the province to a wider market for tourists through a key international hub.”

    “Cebu Pacific will be the first airline to fly direct between Puerto Princesa, Palawan, and Hong Kong, one of the largest global aviation hubs. The maiden Puerto Princesa-Hong Kong flight will be on November 17, 2019,” the low-cost carrier said in a statement.

    Flights between Palawan and Hong Kong operate four times a week.

    “Flight 5J 5306 departs Puerto Princesa at 3:35pm on Tuesdays, Thursdays and Sundays; and at 4:05pm on Saturdays. The return flight, 5J 5307 departs Hong Kong at 7:30pm on Tuesdays, Thursdays and Sundays; and at 8:00pm on Saturdays,” it said.

    Cebu Pacific will also be launching its Clark-Puerto Pincesa flight on the same day.

    “Together, these two new routes increase capacity to Puerto Princesa by 7%,” it said.

    Also on Wednesday, the budget carrier introduced its “CEB Flexi,” a flight add-on that allows travelers to rebook their flights “up to two times.”

    “Available starting October 22, 2019, CEB Flexi gives CEB passengers the freedom to rebook flights until two hours before departure,” it said.

    The low-cost carrier said CEB Flexi is 60% cheaper compared to current booking fees.

    “CEB Flexi is priced at P499 for domestic flights, P799 for international short-haul flights, and P1,099 for international long-haul flights. Along with the roll-out of CEB Flexi, all new flights booked starting October 22, 2019 will be non-refundable,” it said.

    This add-on can be purchased during booking through the airline’s website or its mobile app.

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  • Cebu Pacific gives travelers flexibility to rebook flights

    Cebu Pacific gives travelers flexibility to rebook flights

    Available starting October 22, 2019, CEB Flexi gives CEB passengers the freedom to rebook flights until (2) hours before departure, offering convenience and peace of mind. This add-on can be purchased during booking through the airline website, www.cebupacificair.com or the official mobile app.

    “CEB Flexi is a great complement to year-round low fares as it provides the power and option to rebook flights should the need arise. We encourage passengers to book in advance to avail of great low fare deals, now we also provide the ability to change travel dates, giving peace of mind that the flights they booked won’t go to waste,” said Candice Iyog, CEB Vice President for Marketing and Customer Experience.

    Compared to current rebooking fees, CEB Flexi is 60% cheaper, and travelers only have to pay the difference in fare (if applicable). CEB Flexi is priced at PHP499 for domestic flights, PHP799 for international short-haul flights, and PHP1,099 for international long-haul flights. Along with the roll-out of CEB Flexi, all new flights booked starting October 22, 2019 will be non-refundable.

    CEB Flexi is the newest add-on that Cebu Pacific passengers can avail of, giving the power to choose conveniences that best fit their travel needs. Other options include prepaid baggage allowance, in-flight meals and buy-on-board snacks, seat selection, travel insurance, and the CEB WiFi kit.

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  • Cebu Pacific to launch Clark-Guangzhou flights

    Cebu Pacific to launch Clark-Guangzhou flights

    Cebu Pacific said it is set to launch in November direct flights between Clark in Pampanga and Guangzhou, China amid increasing demand for leisure and business travel.

    “Cebu Pacific will launch next month direct flights between the Clark International Airport and Guangzhou, China, becoming the first Philippine carrier to link the two cities,” the low-cost carrier said in a statement on Saturday.

    Flights between Clark and Guangzhou will be operating four times a week beginning Nov. 11: Monday, Wednesday, Friday, and Saturday.

    “The flight departs Clark at 11:35pm; while the return flight departs at 3:15am of the next day,” it said.

    Cebu Pacific said the new route will cater to “increasing demand for leisure and business travel” and it will “further enhance the potential for investments in the special economic zones in Central Luzon, including the 9,450-hectare New Clark City.”

    It noted that the Clark International Airport is within proximity to Manila-Clark passenger railway connecting Manila to Clark and a cargo railway connecting Subic to Clark, which are both expected to be operational by 2022.

    “With direct air service between Clark and Guangzhou, it will be easier for entrepreneurs and businessmen in the e-commerce space to meet up with suppliers, Cebu Pacific Vice-President for Commercial Alex B. Reyes was quoted as saying in the statement.

    Guangzhou, one of China’s nine National Central Cities, is a wholesalers’ “haven for retail and popular consumer goods,” the budget carrier noted.

    The low-cost airline currently flies 27 times weekly between the Philippines and mainland China, with direct flights between Shanghai, Manila and Cebu; as well as Manila and Beijing, Guangzhou, Xiamen and Shenzhen.

    Cebu Pacific operator Cebu Air, Inc. recorded a 116% growth in its net income in the first half to P7.14 billion, driven by its increased passenger volume and higher average fares.

    Shares in Cebu Air went up 20 centavos or 0.22% to close at P92.20 apiece on Friday.

  • Cebu Pacific introduces online chatbot for customer support

    Cebu Pacific introduces online chatbot for customer support

    Philippines-based low-cost carrier Cebu Pacific has launched its online travel assistant, Charlie the Chatbot, to provide 24/7 support for customers.

    Charlie, now available on the airline’s website and official Facebook page, can help answer customers’ frequently asked questions, which include flight bookings, inflight meals, baggage allowance and so on.

    Customers who need help can type in their queries in English one at a time, or choose from a variety of suggested topic options when they open the chatbox.

    Charlie’s capabilities also include assisting passengers with their flight check-in, providing flight itineraries and boarding passes, and sharing details of the airline’s ongoing seat sales and promotions.

    “We’ve always talked about being an enabler of fun and accessible travels, and as part of our thrust to enhance customer experience with the airline, we created Charlie,” said Candice Iyog, vice president for marketing and customer experience at Cebu Pacific.

    “As we officially launch our chatbot, we hope to offer convenience and helpful information within our travelers’ fingertips.

    “Charlie still has a long way to go in terms of learning – just like any chatbot. Rest assured, we are continuously working on expanding Charlie’s knowledge in order to provide our passengers with the best customer experience possible.”

    The airline says Charlie has engaged with more than 393,000 passengers since its inception in January this year.

  • Cebu Pacific launches new inflight menu

    Cebu Pacific launches new inflight menu

    Cebu Pacific is launching a new selection of inflight meals for purchase starting October this year.

    The new meals include a Singaporean dish (Hainanese Chicken Rice shown above), Filipino cuisine, and a vegetarian option.

    “As every Cebu Pacific flight is a journey to or from home, we have designed this refreshed inflight menu to bring a feeling of comfort in the form of simple meals and familiar tastes,” said JB Bueno, director for inflight catering and sales at Cebu Pacific.

    Below are some of the meals passengers traveling with the airline can buy starting next month:

    Roasted Chicken Sandwich (toasted panini bread with roasted chicken, sautéed spinach, and grated cheddar cheese with a garlic aioli spread).

    Lechon Paksiw (slices of roasted suckling pig stewed in a blend of vinegar, sugar, and spices, served with white rice).

    Other meals include the following:

    • Pinoy Spaghetti
    • Beef Salpicao
    • Chicken Yakisoba
    • Crab Salad Sandwich

    In addition to being available for purchase on flight, passengers can also pre-order the meals before the flight, according to Cebu Pacific. The carrier also added that the meals come with information on nutrition to cater to health-conscious travelers flying with Cebu Pacific.

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  • Cebu Pacific holding ‘9.9’ promo fare sale

    Cebu Pacific holding ‘9.9’ promo fare sale

    Cebu Pacific is holding another seat sale from Sept. 9 to 10. The airline did not specify fares but said new destinations will become available every 8 hours starting midnight Sept. 9.

    From 12 a.m. to 8 a.m. all local destinations except Batanes and Marinduque will be on offer.

    From 8 a.m. to 4 p.m. Cebu Pacific will offer promo fares to Japan, Korea, China, Taiwan, Hong Kong and Macau.

    Promo fares to ASEAN destinations, Dubai and Australia will be offered from 4 p.m. to 12 a.m.

    The fares will be valid for travel from April 1 to Aug. 31 next year.

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  • Cebu Pacific Air Cargo continues digital transformation with SmartKargo

    Cebu Pacific Air Cargo continues digital transformation with SmartKargo

    Cebu Pacific Air has renewed its contract with QuantumID Technologies to ramp up SmartKargo for CEB Cargo. The partnership will continue the cloud-based real-time management of CEB’s air cargo business using the advanced SmartKargo operating system.

    The largest Philippine carrier has utilized the innovative Software as a Service (SaaS) solution to empower customers with real-time shipment information and advanced tools such as mobile apps that streamline customer experience via kiosks at the warehouse.

    The mobile app has also allowed CEB Cargo to enable its clients to manage their shipments end-to-end, from booking to destination. In addition, SmartKargo has helped CEB manage and integrate new dedicated cargo capacity into its fleet.

    “The SmartKargo Cloud solution has equipped CEB Cargo with the advanced digital tools to run our business,” said Alex Reyes, Cebu Pacific Vice President for Commercial. “We are very pleased to continue the partnership, and look forward to sustained growth that SmartKargo has enabled.”

    Enhanced capabilities of SmartKargo allowed CEB Cargo to provide paperless Airway Bills (e-AWBs), and ease of booking for CEB Cargo agents and customers by allowing single-screen data entries. In addition, the solution provides simplified pricing and rate-making capabilities; real-time capacity management; user-configurable business Intelligence and reporting; and integrated Cargo Revenue accounting.

    The platform supports streamlined participation with partners doing e-commerce—facilitating B2B or B2C door-to-door operations via mobile applications as well as third party integration.

    “We at SmartKargo look forward to continuing providing CEB Cargo with solutions and tools to grow their business,” said Jay Shelat, Executive Vice President at QuantumID Technologies. “We are happy and grateful to be working with an outstanding team of cargo professionals and excellent leadership.”

    Cebu Pacific was the first Asian carrier to adopt the SmartKargo Cloud platform in 2013.

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  • Cebu Pacific wants more flights to tense Hong Kong

    Cebu Pacific wants more flights to tense Hong Kong

    The Philippines’ largest budget airline is seeking additional flights to Hong Kong despite ongoing anti-government demonstrations.

    In a filing before the Civil Aeronautics Board, Cebu Pacific said it was seeking added flight entitlements to Hong Kong-based on a provision under the Philippines-Hong Kong Air Services agreement that covers flights from Manila. The CAB has set a hearing on Sept. 16.

    Cebu Pacific has 24 weekly flights between Manila and Hong Kong. It also operates 14 weekly flights from Clark International Airport, two weekly flights from Iloilo and nine weekly flights via Mactan Cebu International Airport.

    This comes despite protests that have, at times, grounded all operations at the Hong Kong International Airport, which the Airports Council International said was the 8th busiest in the world in terms of passenger volume.

    The protests were initially aimed at a bill, eventually shelved by the Hong Kong government, that would have allowed the extradition of fugitives to mainland China. Massive demonstrations, which began in June, show no signs of dissipating.

    Cebu Pacific is ramping up expansion as it takes delivery of new planes.

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  • AirAsia eyes flights to Guam by 2020

    AirAsia eyes flights to Guam by 2020

    AirAsia Philippines is planning flights to Guam by 2020 as rival budget airline Cebu Pacific pulls out.

    AirAsia Philippines’ newly appointed CEO Ricardo Islas said the airline would seek a permit to fly to the United States territory once it had secured regulatory approval to be designated an official carrier to the United States.

    “Upon receipt of designation, AirAsia will be ready to apply for an operating permit to operate flights specifically to Guam,” Isla said in a text message.

    “With a fleet of 24 Airbus A320 aircraft, AirAsia is capable of launching flights as soon as permits are ready,” he added.

    AirAsia Philippines earlier filed a petition before the Civil Aeronautics Board (CAB) for designation and allocation of entitlements to the United States currently held by Air Philippines, an affiliate of Philippine Airlines. A CAB hearing on the matter has been set on Sept. 10 this year.

    “We are hopeful the Civil Aeronautics Board will grant our petition,” Isla said.

    Guam, about three and a half hours away from the Philippines, has a population of more than 160,000 people—a quarter of which are Filipinos. This made it attractive for Cebu Pacific, which launched flights between Manila and Guam on March 2016.

    “It was a good market but it’s more of us concentrating efforts on North Asia and Southeast Asia,” Cebu Pacific vice president Alexander Lao said in a recent interview. Lao said the carrier would end Manila-to-Guam flights by Dec. 8 this year.

    AirAsia Philippines earlier announced plans to aggressively expand its fleet and add more destinations. Cebu Pacific, the country’s biggest budget airline, is also on expansion mode.

    Cebu Pacific expects to receive more than 60 aircraft in the next eight years. This will include new orders from the Paris Air Show in June for 31 new planes, comprised of 16 Airbus A330neos, 10 A321XLRs, and five A320neos. The new aircraft has a list price of $6.8 billion.

  • Cebu Pacific poised to become largest airline out of Clark

    Cebu Pacific poised to become largest airline out of Clark

    Philippine low-cost carrier, Cebu Pacific (CEB), is poised to become the country’s largest airline operator out of the Clark airport.

    CEB President and CEO Lance Y. Gokongwei said last week that by October, CEB will be starting the Clark-Puerto Princesa flights and by the end of December, CEB will be the largest airline operator out of Clark.

    He said CEB will fly to seven domestic and four international destinations, about 170 flights per week with almost 30 percent into Clark.

    “We’re very eager to grow here because we inaugurated Clark in 2006 and it is now our 13th year, and we are very supportive of Clark as a tourist and business destination,” Gokongwei said.

    He said next year CEB will add even more destinations as it is set to receive seven more aircraft this year and about 15 more in the next five years.

    “So definitely Clark is in our plans,” he added, especially with the opening of the new Clark passenger terminal which has a capacity of 8 million passengers plus the original four million.

    “So, a lot of room to grow. I do expect that Clark will be our fastest-growing hub in the next five years and I think it will easily triple in the next five years,” Gokongwei said.

    “I think the infrastructure to Clark has definitely improved and by 2024 and 2025 with the railway, it’s going to grow and the constraints in Naia are also supporting the growth of Clark,” he observed.

    “Because if you want to serve Luzon or you want an international hub to the Visayas and Mindanao, then Clark is the place to do it,” he added.

    CEB is the biggest airline with four international destinations out of Clark but domestically, it’s Philippine Airlines, said Alexander Lao, CebGo president and CEO.

    CEB flies to Cebu, Davao, Boracay, Tagbilaran, Bacolod, Iloilo and soon Puerto Princesa domestically. “Our strategy is to keep increasing the number of frequencies on those thicker routes,” Lao said.

    CEB’s future plans include making the four times weekly Narita flights daily and mount flights to Kansai since it is the second largest city in Japan.

    However, long-haul flights out of Clark are not yet in the horizon for CEB because “it is not viable for us,” Gokongwei said.

    “But I think there is enough catchment basin in this area to service domestic and short haul international flights,” he added.