To anticipate the travel and tourism post-pandemic recovery, Philippine’s budget carrier Cebu Pacific is planning to expand and renew its fleet for the next few years.
“Over the next five years, we will have 48 deliveries and 35 exits, ending 2026 with 87 aircraft,” said Lance Gokongwei, Cebu Pacific CEO at the company’s shareholder meeting on Wednesday (11 May). The company is allocating PHP32.8 billion (USD625.8 million) for this expansion and fleet renewal program.
As countries started to relax Covid-19 restrictions, Cebu Pacific has seen a substantial passengers increase in the first quarter of 2022 compared to the same period in 2021. Until April 2022, the airline carried over two million passengers that have been noted as a 272% increase from last year.
However, according to the company’s official company statement, while it sees a better business outlook driven by domestic recovery and re-openings of international destinations, it remains “[…] cautious of the risks presented by increasing jet fuel prices and interest rates and depreciation of the Philippine pesos versus the U.S. dollar,”.
The company’s expansion and fleet renewal plan will see Cebu Pacific replacing some of its 74-strong fleet of aircraft with more fuel-efficient Airbus A330neo.
Founded in 1988, Cebu Pacific is Asia’s oldest low-cost airline. From its main hubs in Manila and Cebu, the airline is serving both domestic and international routes and has become the Philippines’ largest airline based on the number of passengers flown in 2010.
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