Cebu Air, Inc.

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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 2019	PHP	USD
Revenue	84,806.81M	1,637.81M
Gross Profit	15,597.45M	301.22M
Operating income	12,621.01M	243.74M
Income before tax	10,217.44M	197.32M
Net income	9,122.95M	176.18M
EBITDA	29,960.17M	578.60M
Diluted EPS	15.21	0.29
Dividends Per Share	0	0
Total Assets	157,732.57M	3,114.47M
Total liabilities	112,831.59M	2,227.89M
Total equity	44,900.97M	886.58M
Operating cash flow	29,306.92M	565.98M
	Currency in PHP	Currency in USD

Historical Data

PHP | USD

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Revenue	56,501.65M	61,899.27M	68,029.13M	74,113.77M	84,806.81M
Gross Profit	11,252.36M	14,064.24M	12,244.98M	9,408.05M	15,597.45M
Operating income	9,700.22M	12,251.19M	10,134.27M	7,049.88M	12,621.01M
Income before tax	3,493.37M	9,537.85M	8,208.05M	3,483.16M	10,217.44M
Net income	4,387.22M	9,754.13M	7,907.84M	3,922.74M	9,122.95M
EBITDA	14,811.76M	19,370.99M	18,183.05M	16,635.50M	29,960.17M
Diluted EPS	7.24	16.10	13.05	6.50	15.21
Dividends Per Share	2	2.75	4.50	7	0
Total Assets	87,526.65M	103,456.56M	111,584.75M	129,391.48M	157,732.57M
Total liabilities	62,571.46M	69,951.28M	71,799.17M	89,289.34M	112,831.59M
Total equity	24,955.19M	33,505.27M	39,785.57M	40,102.13M	44,900.97M
Operating cash flow	12,496.16M	19,383.88M	17,919.94M	15,360.07M	29,306.92M

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Revenue	1,240.89M	1,303.48M	1,349.39M	1,406.79M	1,637.81M
Gross Profit	247.12M	296.16M	242.88M	178.57M	301.22M
Operating income	213.03M	257.98M	201.01M	133.81M	243.74M
Income before tax	76.72M	200.84M	162.81M	66.11M	197.32M
Net income	96.35M	205.40M	156.85M	74.45M	176.18M
EBITDA	325.29M	407.91M	360.67M	315.76M	578.60M
Diluted EPS	0.15	0.33	0.25	0.12	0.29
Dividends Per Share	0.04	0.05	0.08	0.13	0
Total Assets	1,860.09M	2,081.09M	2,235.27M	2,460.61M	3,114.47M
Total liabilities	1,329.75M	1,407.11M	1,438.28M	1,698.00M	2,227.89M
Total equity	530.34M	673.98M	796.98M	762.61M	886.58M
Operating cash flow	274.44M	408.18M	355.45M	291.55M	565.98M

Valuation Measures

Dec 2019
PER	5.88
ROA	6.35%
ROE	21.46%
Operating margin	14.88%
Profit margin	10.75%

Key executives

President, CEO & Executive Director: Lance Yu Gokongwei
Chief Operating Officer: Michael Ivan S. Shau
Chief Finance Officer & Compliance 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. (67.8%)
FIL Investment Management (Singapore) Ltd. (3.3%)
Social Security System (1.4%)
Dimensional Fund Advisors LP (1.2%)
FIL Investment Management (Hong Kong) Ltd. (1.0%)
The Vanguard Group, Inc. (1.0%)
BlackRock Fund Advisors (0.4%)
Norges Bank Investment Management (0.3%)
SSgA Funds Management, Inc. (0.3%)
GO JAMES L (0.2%)

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

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

Last Updated on 3 Aug, 2020