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Transportation

Cebu Air, Inc.

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 PHPUSD
Revenue84,806.81M1,637.81M
Gross Profit15,597.45M301.22M
Operating income12,621.01M243.74M
Income before tax10,217.44M197.32M
Net income9,122.95M176.18M
EBITDA29,960.17M578.60M
Diluted EPS15.210.29
Dividends Per Share00
Total Assets157,732.57M3,114.47M
Total liabilities112,831.59M2,227.89M
Total equity44,900.97M886.58M
Operating cash flow29,306.92M565.98M
Currency in PHPCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 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 2015Dec 2016Dec 2017Dec 2018Dec 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
PER5.88
ROA6.35%
ROE21.46%
Operating margin14.88%
Profit margin10.75%

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

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