Oil prices, competition hurt Manila's Cebu Air shares: CEO
Cebu Pacific CEO Lance Gokongwei stated rising fuel costs and the prospect of more competition in the Philippines are worrying its investors (Reuters, 20-Jan-2011). Mr Gokongwei also said the carrier expected to have beaten a consensus forecast of USD137 million net income in 2010, more than 80% higher than 2009. The carrier has already hedged 35% of its fuel consumption for 2011. Its total consumption was not specified. Mr Gokongwei said investors were also worried about greater competition from other LCCs such as AirAsia and Tiger Airways, as the Philippines pursues an open skies policy.
Cebu Pacific: "What the government seems to be endorsing is 'pocket open skies' to airports outside Manila with a right of reciprocity for Philippine carriers. I will have 29 Airbus by the end of 2011. You have the total industry at 60-65." CEO Lance Gokongwei. Source: Reuters, 20-Jan-2011.