Cebu Pacific About To Order 70 Aircraft

Reuters reports that Cebu Pacific is reportedly set to order 70 new aircraft, and the deal is expected to be announced momentarily.

Cebu Pacific would look to order dozens of new narrowbody jets that would amount to somewhere near 70 units as part of growth and renewal efforts.

The Philippine-based airline has been looking to purchase new aircraft for some time, and executives have documented their search several times.

Most recently, in February 2024, the airline said it was continuing to move towards a deal for 100 to 150 narrowbody aircraft from Airbus or Boeing.

Cebu Pacific remains an all-Airbus operator for jet-powered aircraft; therefore, the European plane maker has hoped it would be the company that secures important contract with Asian carrier.

The purchase of new aircraft has long aligned with the airline’s intent of diversifying its aircraft portfolio and, thus, overall risk across the company. Q2 of 2024 had previously been identified as the timeframe for when a decision would be made on whether Airbus or Boeing had won the contract.

Reuters sources said the contract would include many A321neo jets, the highest-selling Airbus aircraft in 2023, and an existing plane in the Cebu Pacific portfolio.

By the mid-2030s, Cebu Pacific wants to double its fleet and is already planning increases across the 2024 calendar year to meet its ambitious growth targets. However, a significant purchase such as the one being discussed will be important for the company in attaining long-term targets.

A purchase from Cebu Pacific will benefit the airline and the Philippines in the long term. Once confirmed, the deal will be among the largest aircraft purchases from a Philippines-based company.

While Cebu Pacific will look towards continuity across its business, with fleet harmony a key factor, other factors worth considering will be delays associated with delivery timeframes. More airlines, including Cebu Pacific, are looking to purchase aircraft sooner rather than later to ensure delivery slots can be secured.