Latest news with #CebuAir
Yahoo
5 days ago
- Business
- Yahoo
Cebu Air Just Pulled Off the Biggest Surprise Profit in Over a Decade
Cebu Air (CEBUF) just posted its strongest quarter in over a decadethanks to a rare combination of rising travel demand and a surprise engine windfall. The Philippine low-cost carrier reported 8.51 billion pesos ($148 million) in Q2 net income, more than six times higher than the same period last year. A major contributor? A 4.8 billion peso boost from four free Pratt & Whitney engines booked as other income in June. That one-off helped deliver a record profit dating back to at least 2010and investors took notice. CEB shares jumped as much as 4.4% in Manila on Wednesday, outpacing the broader index. Warning! GuruFocus has detected 7 Warning Signs with CEBUF. But this wasn't just a one-time story. Cebu flew 7 million passengers last quarter, up 16% year-over-year, powered by a 23% jump in international traffic and a 14% lift in domestic. That momentum came despite ongoing disruptions from RTX Corp.'s Pratt & Whitney GTF engines, which are undergoing a global inspection cycle due to flawed components. While that grounding has sidelined parts of Cebu's fleet, the strong rebound in traveland management's ability to negotiate engine compensationsuggest the airline could be navigating the headwinds better than most. Maybank analysts seem to think so. In a June note, they named Cebu their top tourism pick in the Philippines, pointing to fleet expansion, rising passenger volumes, and the tailwind of infrastructure upgrades across the country. With international traffic roaring back and engine issues partly cushioned by manufacturer support, Cebu Air might be one of the rare airline stocks positioned to benefit on both the operational and financial front. This article first appeared on GuruFocus. Sign in to access your portfolio
Bloomberg
5 days ago
- Business
- Bloomberg
Cebu Air Profit Hits 15-Year High on Engine Boost, Travel Demand
By and Cliff Harvey Venzon Save Philippine budget carrier Cebu Air Inc. 's second-quarter profit surged more than sixfold, boosted by an engine compensation package from Pratt & Whitney and higher passenger volumes. Net income jumped to 8.51 billion pesos ($148 million) in the April-June period, marking Cebu Air's highest quarterly profit since at least 2010. That includes 4.8 billion pesos in four free-of-charge engines from Pratt and Whitney which the airline secured in June and booked as other income, according to a statement Wednesday.
