Cebu Pacific’s Dubai route surges ahead as profit doubles



Cebu Pacific Air boosted passenger numbers between Dubai and Manila last year as profits more than doubled, overcoming overcapacity in the global aviation sector.

The Philippine low-cost carrier said overall passenger numbers between Dubai and Manila rose by 8 per cent to more than 252,000.

That beat overall passenger growth at the airline, which flew a total of 19.1 million customers, up by 4.1 per cent on a year earlier.

The airline reported profit of 9.8 billion Philippine pesos (Dh725.4 million) – an increase of 122 per cent on a year earlier. Growth in revenue from baggage fees, on-board meals and merchandise helped to drive profits higher, it said.

Total revenue, which includes cargo services, jumped by 9.6 per cent to 61.9bn pesos.

In 2016, Cebu Pacific flew to 36 domestic and 30 international destinations through 102 routes.

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How will Gen Alpha invest?

Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.

“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.

Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.

He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.

Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”

Jigra
Director: Vasan Bala
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
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