Cebu Air Inc., the country’s largest budget carrier better known as Cebu Pacific, reported Tuesday it swung to a net profit of P3.26 billion last year from a net loss of P3.26 billion, helped by foreign exchange and fuel hedging gains.

The airline JG Summit Holdings Inc. (JGS) booked P1.1 billion in foreign exchange and fuel hedging gains in 2009, a reversal from a loss of P4.1 billion in 2008.

Cebu Pacific generated revenue of P23.31 billion last year, up 18 percent from P19.68 billion from 2008 because of the continued expansion of its route and flight network, additional passenger and cargo traffic, and significantly higher revenues from ancillary services.

Intent on having the largest Airbus 320 fleet in the country and the second largest fleet in Southeast Asia by 2014, Cebu Pacific (CEB) has ordered seven more Airbus A320 aircraft on top of an existing order of 15 aircraft.

The 22 brand-new aircraft will be delivered from 2010 until 2014. The first of the 180-seat aircraft arrives in October, and will be used to add routes and frequencies on CEB’s network of 33 domestic and 14 international destinations.

“This will enable us to have the largest fleet of Airbus A320 family in the Philippines, and the second largest in South East Asia, allowing us to offer our trademark low fares to even more Filipinos,” announced CEB President and CEO Lance Gokongwei.

CEB has already carried more than 40 million passengers since its inception in 1996. In 2009, the airline posted a 30% year-on-year growth in the number of its domestic and international passengers. This year alone, CEB will transport more than 10 million passengers.

In the next five years, CEB will more than double its seat capacity, he pointed out.

The new Airbus A320 aircraft is part of Airbus single-aisle product offering. The aircraft’s advanced wing design lessens fuel burn and improves take-off capability, while the CFM56 engine helps lower maintenance costs. (With Dow Jones report)