PHOTO FROM CEBU PACIFIC
MANILA, Philippines — Budget carrier Cebu Pacific is leasing four new Airbus A330neo aircraft from global aviation finance company Avolon to support its expansion in Asia and the Middle East.
In a statement on Wednesday, Avolon said the first aircraft was scheduled for delivery before the end of the year. The others are expected to be received through 2026.
Prior to this, Avolon has already leased 11 jets to the Gokongwei-led airline. These covered five A320ceos (current engine option), three A320neos (new engine option) and three A330neos.
“These new A330neos support our goal of transitioning to a more fuel-efficient fleet and will support our continued expansion of routes both in and to the Middle East,” Cebu Pacific chief strategy officer Alex Reyes said.
READ: Airline passenger volume soared by 55% in 2023
“With the continuing recovery of air travel in Asia, we look forward to further opportunities to support customers on sale and leaseback transactions, or through our order book, as the availability of widebodies out to 2030 continues to tighten,” Avolon president and chief commercial officer Paul Geaney said.
Cebu Pacific is expecting the delivery of 14 aircraft in total this year as it targets to have a 92-jet fleet by the end of 2024.
Refleeting
The budget carrier has allocated a P50-billion capital expenditure for mostly aircraft-related spending this year.
READ: Cebu Pacific back in the black, cues fleet additions
On top of this, Cebu Pacific is in the process of reviewing proposals from jet manufacturers Airbus and Boeing for a $12-billion aircraft order, targeting to pick one supplier by the first half.
The aircraft order includes the acquisition of 100 to 150 aircraft to service the anticipated rise in passenger volume as it expands its route network. The first batch of jets is expected to arrive as early as 2027 while the rest is slated for delivery until 2035.
READ: Cebu Pacific to buy 100-150 jets worth $12B in biggest aircraft deal in PH history
Cebu Pacific reported that its net earnings and operating income amounted to P7.9 billion and P8.6 billion last year, a turnaround from losses in 2022.
Total revenues, meanwhile, soared by 60 percent to P90.6 billion last year. It flew 20 million passengers, showing a 41-percent growth in volume.