Cebu Pacific sees bright outlook for 2013
Cebu Pacific is planning more double-digit capacity expansion in 2013 as the Philippine LCC launches widebody services and expands its limited Japanese network. Cebu Pacific expects to expand seat capacity by 11% in 2013 and grow its fleet by 17% to 48 aircraft. The expansion, which includes the launch of its new long-haul operation, should allow the carrier to extend its already leading share of the Philippine market.
Cebu Pacific recorded 11% growth in passenger traffic in 2012 and a 7% operating profit margin despite intense competition, particularly in the domestic market. The carrier’s load factor and net profit dropped slightly. But Cebu Pacific’s outlook for 2013 is brighter given the recent rationalisation and consolidation in the Philippine domestic market and the new opportunities for international expansion created as a result of Philippine authorities passing an ICAO safety audit in Feb-2013.