Cebu Pacific to purchase 152 Airbus aircraft for P1.4T

Gokongwei-led budget carrier Cebu Pacific, is set to make the biggest aircraft order in Philippine aviation history as it is set to purchase over 150 aircraft from Airbus for $24 billion or P1.4 trillion.

In a regulatory filing, Cebu Pacific operator Cebu Air Inc. said it inked a memorandum of understanding (MOU) with Airbus that covers firm orders for up to 102 A321neo, and 50 A320neo Family purchase rights, which will be powered by Pratt & Whitney GTF engines.

“The order is designed to provide Cebu Pacific with maximum flexibility to adapt fleet growth to market conditions, with the ability to switch between the A321neo and A320neo,” Cebu Pacific chief executive officer Michael Szucs said.

“When finalized, the deal will be a significant milestone for the local airline industry and a testament to CEB’s unwavering commitment to support the Philippine growth story,” he added.

Cebu Pacific said the transaction is expected to be completed in the third quarter of the year.

In Malacañang, President Ferdinand Marcos Jr. said the acquisition plan “is a very good sign” for the country's economy. 

“It gives us a great deal of encouragement that if we get it right, we can actually get something done and make a transformation [in] our economy. Make it happen,” Marcos said during the courtesy call of Cebu Pacific representatives, led by Lance Gokongwei, president and CEO of JG Summit Holdings, Inc., which owns the airline. 

Cebu Pacific officials briefed Marcos on the airline's investment plans and the government's support for maintaining the competitiveness of the Philippine aviation sector. 

The company earlier this year said it expects to close the year with 95 aircraft, which will boost its full-year 2024 seat capacity by 12% to 15% compared with 2023.

The 95 aircraft targeted to be held by the end of the year will be made up of 16 ATRs, 51 Airbus NEOs, and 28 Airbus CEOs.

The carrier ended the first quarter of the year with a P2.24-billion net earnings, doubling the P1.08 billion the same period last year as total revenues jumped by 21% to P25.3 billion. — RSJ/VBL, GMA Integrated News