Cebu Pacific says biggest aircraft purchase to be completed by early 2024

CEBU PACIFIC is expecting to complete its biggest aircraft purchase by early 2024, the company’s president said.

“We have just released the RFP (request for procurement) to Airbus and Boeing. We hope the entire process will end by the first quarter of next year,” Alexander G. Lao, president and chief commercial officer of Cebu Pacific told reporters last week.

The budget carrier is planning to order over 100 narrow-body aircraft from Boeing or Airbus worth roughly $12 billion based on the current list of prices, Mr. Lao said.

“We are excited. It is such a big commitment, it will be the largest order in Philippine aviation history,” he added.

Cebu Pacific currently operates a fleet of 73 Airbus and ATR aircraft, which it earlier said will double with its planned order of more aircraft.

It is anticipating 76 aircraft in its fleet this year before expanding to 91 aircraft by 2024.

Earlier, the company’s listed operator Cebu Air, Inc. said it would lower its fleet growth rate for 2024 as engine maker Pratt and Whitney (P&W) inspects A320/321 NEO aircraft engines worldwide following suspected issues.

Cebu Air reported a profit of P2.67 billion in the second quarter after a significant boost in passenger revenues, turning around from the P1.89-billion net loss incurred in the same period last year.

From April to June, the company recorded P22.67 billion in gross revenues, marking a 62.3% increase from last year’s P13.97 billion.

Passenger revenues, totaling P15.84 billion, constituted the majority of Cebu Air’s second-quarter top line, reflecting an 86.3% increase compared with last year’s P8.51 billion.

To date, the low-cost carrier flies to over 30 local destinations and 25 international destinations across Asia, Australia, and the Middle East. — Ashley Erika O. Jose