Cebu Air, Inc.

In the news

All-star Philippine conglomerates contest to upgrade 'worst' airport Mar 9, 2018
Philippines' JG Summit to quadruple banking assets Jan 11, 2018
Philippine conglomerates report healthy earnings amid robust economy Nov 10, 2017
Nikkei Asia300 Index falls as U.S. tax plan disappoints investors Nov 10, 2017
CEO in the news: Dennis Uy rides the Philippine president's coattails to success Aug 24, 2017

Company Background

Cebu Air operates Cebu Pacific Air, the Philippines' largest budget carrier. The company is a unit of JG Summit Holdings, a diversified conglomerate controlled by the Gokongwei family. The airline began operating in 1996 with its first domestic flight from Manila to the Philippine central island of Cebu. Its international operations began in 2001 with flights from Manila to Hong Kong. By the end of 2013, the company was operating a network of 60 domestic and 32 international routes, with a total of 2,284 scheduled weekly flights.

In April of this year, the EU removed the airline from a safety blacklist, and in June, the company secured clearance from the Federal Aviation Administration to fly to the U.S.

The airline is headed by CEO Lance Gokongwei, the only son of tycoon John Gokongwei, who founded the JG Summit empire as a corn starch producer. The younger Gokongwei, who holds a double degree in finance and applied science from the University of Pennsylvania, sits on the board of major companies controlled by the Gokongwei family, including those involved in food and beverage, real estate, property, banking and petrochemicals.

Business Summary

Cebu Air, Inc. provides air cargo services. It operates as a carrier in the Philippine air transportation industry, which engages in transportation of passengers, mail, merchandise and freight. The company has distribution channels which includes Internet; direct sales through booking; sales offices; call centers and government/corporate client accounts; and third-party sales outlets. It offers ancillary services such as cancellation and rebooking options, in-flight merchandising, baggage and travel-related products and services. The company was founded on August 26, 1988 and is headquartered in Cebu, Philippines.

Financial Highlights

Dec 2018	PHP	USD
Revenue	74,113.77M	1,406.79M
Gross Profit	15,058.96M	285.84M
Operating income	7,049.88M	133.81M
Income before tax	3,483.16M	66.11M
Net income	3,922.74M	74.45M
EBITDA	16,635.50M	315.76M
Diluted EPS	6.50	0.12
Dividends Per Share	7	0.13
Total Assets	129,391.48M	2,460.61M
Total liabilities	89,289.34M	1,698.00M
Total equity	40,102.13M	762.61M
Operating cash flow	15,360.07M	291.55M
	Currency in PHP	Currency in USD

Historical Data

PHP | USD

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	52,000.01M	56,501.65M	61,899.27M	68,029.13M	74,113.77M
Gross Profit	5,454.15M	11,252.36M	14,064.24M	12,244.98M	15,058.96M
Operating income	4,157.33M	9,700.22M	12,251.19M	10,134.27M	7,049.88M
Income before tax	782.30M	3,493.37M	9,537.85M	8,208.05M	3,483.16M
Net income	853.49M	4,387.22M	9,754.13M	7,907.84M	3,922.74M
EBITDA	8,438.86M	14,811.76M	19,370.99M	18,183.05M	16,635.50M
Diluted EPS	1.41	7.24	16.10	13.05	6.50
Dividends Per Share	1.50	2	2.75	4.50	7
Total Assets	78,029.64M	87,526.65M	103,456.56M	111,584.75M	129,391.48M
Total liabilities	56,490.84M	62,571.46M	69,951.28M	71,799.17M	89,289.34M
Total equity	21,538.80M	24,955.19M	33,505.27M	39,785.57M	40,102.13M
Operating cash flow	7,659.18M	12,496.16M	19,383.88M	17,919.94M	15,360.07M

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	1,171.47M	1,240.89M	1,303.48M	1,349.39M	1,406.79M
Gross Profit	122.87M	247.12M	296.16M	242.88M	285.84M
Operating income	93.65M	213.03M	257.98M	201.01M	133.81M
Income before tax	17.62M	76.72M	200.84M	162.81M	66.11M
Net income	19.22M	96.35M	205.40M	156.85M	74.45M
EBITDA	190.11M	325.29M	407.91M	360.67M	315.76M
Diluted EPS	0.03	0.15	0.33	0.25	0.12
Dividends Per Share	0.03	0.04	0.05	0.08	0.13
Total Assets	1,744.36M	1,860.09M	2,081.09M	2,235.27M	2,460.61M
Total liabilities	1,262.85M	1,329.75M	1,407.11M	1,438.28M	1,698.00M
Total equity	481.50M	530.34M	673.98M	796.98M	762.61M
Operating cash flow	172.54M	274.44M	408.18M	355.45M	291.55M

Valuation Measures

Dec 2018
PER	11.25
ROA	3.25%
ROE	9.82%
Operating margin	9.51%
Profit margin	5.29%

Key executives

President, CEO & Executive Director: Lance Yu Gokongwei
Chief Operating Officer: Michael Ivan S. Shau
Chief Financial Officer: Andrew L. Huang
Chief Information Officer: Laureen M. Cansana
Senior VP, Chief Strategy & Compliance Officer: Bach Johann M. Sebastian

Shareholders

JG Summit Holdings, Inc. (67.7%)
FIL Investment Management (Singapore) Ltd. (3.2%)
Social Security System (1.3%)
Dimensional Fund Advisors LP (1.2%)
The Vanguard Group, Inc. (0.9%)
FIL Investment Management (Hong Kong) Ltd. (0.8%)
BlackRock Fund Advisors (0.6%)
Norges Bank Investment Management (0.4%)
Government Service Insurance System (0.4%)
SSgA Funds Management, Inc. (0.3%)

Contact Details

Website:http://www.cebupacificair.com
Address: Doña Juanita Marquez Lim Building, Osmeña Boulevard, Cebu, 6000, Philippines
Phone: +63.2.802.7060

Related Companies

1aviation Groundhandling Services Corp.
South East Asian Airlines, Inc.

Competitors

PAL Holdings, Inc.
AirAsia Group Bhd.
Thai Airways International Public Co. Ltd.
Qantas Airways Limited
Cathay Pacific Airways Limited
Singapore Airlines Ltd.
Vietjet Aviation JSC
InterGlobe Aviation Ltd

Last Updated on 23 Oct, 2019