Cebu Air, Inc., operator of Cebu Pacific said over the weekend it set a higher capital expenditure (capex) budget by 19 percent next year, mainly for acquisition of brand-new aircraft.
“We estimate around P50 billion capex for 2024. It is mostly aircraft-related capex. I think next year we are getting 16 aircraft,” Cebu Pacific president and chief commercial officer Alexander Lao said.
The company had set a P42 billion capex this year for aircraft-related expenses
Lao said the capex for next year will be funded though internally generated funds.
He said the airline was also projecting to grow about 5 percent to 8 percent in terms of capacity next year.
“If we grow by 8 percent next year, let’s see if we can hit 24 million passengers,” he said.
Lao said Cebu Pacific will miss the 22 million passengers target due to the issues with Airbus engine supplier Pratt and Whitney (P&W).
“I think it [passenger traffic] would be slightly below that [22 million] this year given the Pratt and Whitney (P&W) issue,” he said.
Cebu Pacific carried 15.53 million passengers in the first nine months of the year, up 49 percent compared to 10.43 million passengers in the same period last year.
Cebu Pacific posted a net income of P5.02 billion in the first nine months, a turnaround from P12.04 billion in the same period last year.
Revenues amounted to P66.89 billion, up 78 percent from P37.53 billion last year.
Cebu Pacific flies to 35 domestic and 25 international destinations spanning across Asia, Australia, and the Middle East.
The airline currently 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.