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 such as sale of duty-free products on international flights, baggage and travel-related products and services. The company was founded on August 26, 1988 and is headquartered in Cebu, Philippines.

Financial Highlights

Dec 2020	PHP	USD
Revenue	22,617.96M	456.00M
Gross Profit	-17,549.37M	-353.81M
Operating income	-20,769.25M	-418.73M
Income before tax	-22,579.41M	-455.22M
Net income	-22,236.44M	-448.31M
EBITDA	-1,562.56M	-31.50M
Diluted EPS	-33.98	-0.68
Dividends Per Share	0	0
Total Assets	128,458.58M	2,674.91M
Total liabilities	105,767.70M	2,202.41M
Total equity	22,690.87M	472.49M
Operating cash flow	-12,120.18M	-244.35M
	Currency in PHP	Currency in USD

Historical Data

PHP | USD

	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020
Revenue	61,899.27M	68,029.13M	74,113.77M	84,806.81M	22,617.96M
Gross Profit	14,064.24M	12,244.98M	9,408.05M	15,597.45M	-17,549.37M
Operating income	12,251.19M	10,134.27M	7,049.88M	12,621.01M	-20,769.25M
Income before tax	9,537.85M	8,208.05M	3,483.16M	10,217.44M	-22,579.41M
Net income	9,754.13M	7,907.84M	3,922.74M	9,122.95M	-22,236.44M
EBITDA	19,370.99M	18,183.05M	16,635.50M	29,960.17M	-1,562.56M
Diluted EPS	14.73	11.94	5.95	13.92	-33.98
Dividends Per Share	2.51	4.11	6.40	0	0
Total Assets	103,456.56M	111,584.75M	129,391.48M	157,732.57M	128,458.58M
Total liabilities	69,951.28M	71,799.17M	89,289.34M	112,831.59M	105,767.70M
Total equity	33,505.27M	39,785.57M	40,102.13M	44,900.97M	22,690.87M
Operating cash flow	19,383.88M	17,919.94M	15,360.07M	29,306.92M	-12,120.18M

	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020
Revenue	1,303.48M	1,349.39M	1,406.79M	1,637.81M	456.00M
Gross Profit	296.16M	242.88M	178.57M	301.22M	-353.81M
Operating income	257.98M	201.01M	133.81M	243.74M	-418.73M
Income before tax	200.84M	162.81M	66.11M	197.32M	-455.22M
Net income	205.40M	156.85M	74.45M	176.18M	-448.31M
EBITDA	407.91M	360.67M	315.76M	578.60M	-31.50M
Diluted EPS	0.31	0.23	0.11	0.26	-0.68
Dividends Per Share	0.05	0.08	0.12	0	0
Total Assets	2,081.09M	2,235.27M	2,460.61M	3,114.47M	2,674.91M
Total liabilities	1,407.11M	1,438.28M	1,698.00M	2,227.89M	2,202.41M
Total equity	673.98M	796.98M	762.61M	886.58M	472.49M
Operating cash flow	408.18M	355.45M	291.55M	565.98M	-244.35M

Valuation Measures

Dec 2020
PER	--
ROA	-15.53%
ROE	-65.79%
Operating margin	-91.82%
Profit margin	-98.31%

Key executives

President, CEO & Executive Director: Lance Yu. Gokongwei
Chief Finance Officer & Compliance Officer: Andrew L. Huang
Chief Information Officer: Laureen M. Cansana
Vice President-Corporate Affairs: Paterno S. Mantaring
Chief Corporate Affairs Officer: Michael Ivan S. Shau

Shareholders

JG Summit Holdings, Inc. (66.6%)
FIL Investment Management (Singapore) Ltd. (1.7%)
Social Security System (1.4%)
FIL Investment Management (Hong Kong) Ltd. (1.2%)
Matthews International Capital Management LLC (1.0%)
The Vanguard Group, Inc. (0.8%)
Dimensional Fund Advisors LP (0.8%)
Ruffer (Asia) Ltd. (0.5%)
BlackRock Fund Advisors (0.5%)
GO JAMES L (0.2%)

Contact Details

Website:http://www.cebupacificair.com
Address: Robinsons Galleria Cebu, General Maxilom Avenue, Level 4, Cebu, 6000, Philippines
Phone: +63.2.880.27000

Related Companies

1aviation Groundhandling Services Corp.
South East Asian Airlines, Inc.
Aviation Partnership (Philippines) Corp.

Competitors

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

Last Updated on 29 Nov, 2021