Reuters/ABS-CBN News
MANILA, Philippines - Budget carrier Cebu Air Inc. said on Thursday high fuel costs were hurting the airline industry, but the strength of Asian economies would support the growth of low-cost carriers (LCC) in the region.
Cebu Air, operator of the country's largest budget airline Cebu Pacific and a unit of conglomerate JG Summit Holdings Inc., expects a lower net profit this year compared to 2010's P6.9 billion on costlier fuel and lower passenger load, Chief Executive Lance Gokongwei said.
However, profit in the second quarter was likely to exceed its net income in January to March because the airline had raised its fuel surcharge in late March, he told reporters.
"2011 is proving to be a tough year for all airlines, particularly with the issue of rising fuel costs and increasing competition," Gokongwei told reporters.
First-quarter net income was P1.2 billion, down 23% from a year earlier.
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