Budget carrier Cebu Pacific recently received three more aircraft as the Gokongwei-led airline beefs up its fleet amid increasing travel demand and to support the expansion of airport capacity in the country.
Cebu Pacific on Monday said it received an A330neo (new engine option) on July 26, an A320neo on Aug. 3, and an A320ceo (current engine option) on Aug. 4.
This brings the total number of aircraft the company has received so far this year to 10, or more than half of its expected 18 aircraft.
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“As demand for air travel continues to rise, we are confident that we will be able to cater to more passengers looking to connect with other people or discover new destinations with Cebu Pacific,” Cebu Pacific president and chief commercial officer Xander Lao said in a statement.
Neo aircraft are considered fuel-efficient, as these burn 15 percent less fuel per flight and produce less noise compared to older generations.
Cebu Pacific aims to have an all-neo fleet by 2027 in line with its sustainability goals.
At present, the carrier’s fleet is composed of nine Airbus 330s, 39 Airbus 320s, 22 Airbus 321s and 15 ATR turboprop aircraft.
Last month, Cebu Pacific announced a P1.4-trillion purchase order—the largest deal in Philippine aviation history—with European plane maker Airbus for 151 A321neo planes.
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Lance Gokongwei, chair of Cebu Air Inc., said they would receive the first batch of aircraft under the mammoth deal in 2028 in hopes of filling up the runways of upcoming airports across the country, including the New Manila International Airport in Bulacan province. The airport is slated for completion in 2027.
He added they intended to tap both debt and equity to fund the deal that they hope to finalize by the third quarter of the year.
To make space in its balance sheet, Cebu Pacific plans to use part of its P20.66-billion paid-in capital to eliminate a P16.27-billion deficit.
Once Cebu Pacific erases this deficit, its remaining paid-in capital, or money injected by investors in exchange for a company’s shares, will be P4.39 billion.
The Securities and Exchange Commission approved the equity restructuring on Aug. 2, Cebu Pacific said in a stock exchange filing.
Apart from the deal with Airbus, Cebu Pacific also confirmed it was in “exploratory talks” with Ayala Land Inc. for the possible acquisition of the latter’s boutique airline, AirSwift.
Cebu Pacific clarified, however, that “nothing definitive has been agreed upon.” Should the deal push through, this would help widen Cebu Pacific’s domestic network.
The airline currently services over 35 domestic and 24 international destinations.
Cebu Pacific plans to spend most of its P60-billion budget this year on aircraft deals and maintenance.
First-quarter earnings more than doubled to P2.24 billion on higher passenger revenues—up by 25 percent to P18 billion—as more people traveled. —Meg J. Adonis INQ