Cebu Pacific (CEB) said Tuesday it signed an agreement with Airbus to purchase up to 152 A321neo aircraft for $24 billion or nearly P1.4 trillion, making it the largest aircraft order in Philippine aviation industry.
The airline unit of the Gokongwei Group said the memorandum of understanding with Airbus covers firm orders for up to 102 A321neo, plus 50 A320neo purchase rights.
“The order is designed to provide Cebu Pacific with maximum flexibility to adapt fleet growth to market conditions, with the ability to switch between the A321neo and A320neo,” said Cebu Pacific chief executive Michael Szucs.
“When finalized, the deal will be a significant milestone for the local airline industry and a testament to CEB’s unwavering commitment to support the Philippine growth story,” he said.
The purchase agreement to finalize the transaction is expected to be completed by the third quarter of 2024.
The airline selected Pratt & Whitney GTF engines to power the future aircraft.
Cebu Pacific 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.