Cebu Pacific Air Anticipates Major Fleet Expansion with Large Aircraft Order in 2024

Cebu Pacific Air in a recent communication with the Philippines Stock Exchange (PSE), has confirmed ongoing discussions with Airbus and Boeing regarding a substantial aircraft order. This update, dated January 8, follows recent media speculations about the airline’s impending fleet expansion.

The disclosure to the PSE comes after Cebu Air’s Chief Commercial Officer, Alexander Lao, revealed to The Philippine Star that the airline is in the final stages of finalizing what is anticipated to be the largest aircraft order from the Philippines to date. Lao indicated that the order is expected to be placed in the first half of 2024.

Previously reported on Cebu Pacific’s plans for an order of 100 to 150 aircraft. CEO Mike Szucs commented that the process would begin with a request for proposal (RFP) and culminate in a singular, substantial order with either Airbus or Boeing. The airline emphasized that any firm commitment to purchase would only be made after a thorough technical and economic evaluation of the narrowbody aircraft offerings from both manufacturers.

Cebu Pacific aims to fund the initial down payments for this significant order using its cash reserves, before seeking additional financial support from both local and foreign institutions.

Currently, Cebu Pacific’s fleet is exclusively Airbus, consisting of a variety of models, including A320-200s, A320-200Ns, A321-200s, A321-200NXs, A330-300s, and A330-900Ns. CEO Szucs has previously stated that while the airline currently operates Airbus aircraft, it would consider Boeing if their proposal proves more advantageous operationally and financially.

Cebu Pacific is facing challenges with 12 of its aircraft currently out of service for various reasons. The airline has also been impacted by supply chain issues causing maintenance delays and the recent engine recall notice by Pratt & Whitney affecting many of its A320neo aircraft. To mitigate these challenges, Cebu Pacific has adjusted its network and entered into a damp-lease agreement with Bulgaria Air for two A320-200s to be used on domestic routes, both of which have already been ferried to Manila.

This anticipated order reflects Cebu Pacific Air’s ambitious growth strategy and its commitment to modernizing and expanding its fleet to meet the increasing demand for air travel in the Philippines and beyond.