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Wednesday, July 24, 2024

Cebu Pacific set to finalize $12-b aircraft deal in Q2

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Cebu Pacific said Monday it expects to finalize a deal worth more than $12 billion within the second quarter to acquire 100 to 150 narrow-bodied jets, translating into a 9-percent annual increase in seat capacity by 2027.

Cebu Pacific chief finance officer Mark Cezar said the company is in the final stages of coordination with both Airbus and Boeing on the request for proposal for 100 to 150 narrow-bodied jets.

“We expect to announce the results by the second quarter of the year,” Cezar said.

He said the order is expected to result in a 9-percent compounded annual growth rate on seats beginning 2027 when it anticipates initial deliveries to commence.

Cezar said, however, the delivery schedules are still under discussion.

The airline operates one of the youngest fleets in the world, with its diversified fleet mix of 74 aircraft enabling the widest network coverage in the Philippines.

It has six Airbus 330, 33 Airbus 320, 19 Airbus 321 and 16 ATR turboprop aircraft.

Cebu Pacific flies to 35 domestic and 25 international destinations across Asia, Australia and the Middle East.

The airline posted a net income of P2.24 billion in the first quarter of 2024, up by nearly 108 percent from P939 million in the same period last year.

Cebu Pacific generated P25.3 billion in revenue in the first three months, a 21-percent increase from the previous year.

It flew over 5.5 million passengers in the first three months, marking a 14-percent increase from the same period last year and a 3-percent growth from the preceding quarter.

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