Cebu Air Inc., the operator of Cebu Pacific and Cebgo, is spending $650 million to $700 million this year to partly finance the acquisition of new aircraft and accelerate growth.
Cebu Air president and chief executive Lance Gokongwei told reporters the 2019 capital expenditures would be funded through internal generated funds and some borrowings.
The airline is set to receive 12 brand-new aircraft this year to support expansion. The aircraft deliveries include six Airbus A321neo, five A320neo and an ATR 72-600.
The airline received its first A321neo out of its 32 orders from Airbus. The aircraft is capable of operating routes in excess of 5,000 kilometers or fly up to seven hours, allowing the carrier to explore new destinations like India, Russia, northern Japan and other cities in Australia.
“2019 is the year we accelerate growth. On average, we will be receiving one brand-new aircraft per month which can use to increase capacity in key markets or even launch new routes,” Gokongwei said.
“For 2019, we expect capacity to grow from low to mid-teens,” he said.
The airline has a fleet of an Airbus A321neo, 36 Airbus A320, seven Airbus A321ceo, eight Airbus A330, eight ATR 72-500 and 12 ATR 72-600 aircraft.
“Cebu Pacific is expanding rapidly and plays and important part in the transformation of the Philippines’ aviation sector and has played a key role in supporting tourism, trade and business links between the Philippines, the Asia-Pacific and the Middle East,” said Jean Francois Laval, executive vice president of sales in Asia of Airbus.
Cebu Pacific is aiming to fly 200 million passengers by 2020, as it expands its route network and upgrades its fleet to bigger and more fuel-efficient aircraft. The carrier hit the milestone of 150 million passengers flown since inception in late 2017.
Cebu Pacific and subsidiary Cebgo fly to 36 domestic and 26 international destinations with more than 107 routes spanning Asia, Australia, the Middle East and the US.
The airline posted a net income of P2.78 billion in the January-to-September period last year, down 36 percent from P4.376 billion in the same period in 2017.
The company generated revenues of P54.03 billion in nine months last year, up 7.4 percent from P50.331 billion a year ago.