Cebu Pacific to Expand Fleet with 5 New Aircraft Deliveries in Q2 2024

Cebu Pacific, the Philippines-based budget airline led by the Gokongwei group, announced its anticipation of five new aircraft deliveries in the second quarter of 2024. This expansion is part of a broader strategy to increase the airline’s total fleet to 95 aircraft by the end of the year, aiming to boost seat capacity by 12% to 15% compared to 2023.

Strategic Fleet Expansion

During the virtual briefing on the PSE STAR Investor Day, Trina Asuncion, Cebu Pacific’s investor relations director, detailed the company’s plan for receiving a total of 18 new aircraft throughout 2024. The forthcoming additions will see the airline’s fleet diversify further with 16 ATRs, 51 Airbus NEOs, and 28 Airbus CEOs by year-end. This marks a notable increase from the 85 aircraft comprising the 2023 fleet, which included 16 ATRs, 38 Airbus NEOs, and 31 Airbus CEOs.

Robust Growth and Operational Highlights

Cebu Pacific reported significant growth in passenger numbers, flying 5.5 million passengers in the first quarter of 2024, a 14% increase year-on-year and 3% higher than the previous quarter. This rise was attributed to the Easter break and events like the Taylor Swift concert in Singapore, which boosted travel demand. Domestically, the airline carried 4 million passengers across 35 destinations, 66 routes, and over 2,300 weekly flights, reflecting a 5% year-on-year growth. Internationally, the carrier served 1.5 million passengers, a 53% annual increase, spanning 25 destinations and 33 routes with more than 500 weekly flights.

Financial Performance and Future Outlook

Cebu Pacific’s robust operational performance translated into strong financial results, with the airline doubling its net earnings to P2.24 billion in the first quarter from P1.08 billion in the same period last year. Total revenues also saw a significant jump, increasing by 21% to P25.3 billion.

Looking ahead, Cebu Pacific is optimistic about the upcoming summer season and changes in school holidays, which are expected to drive an uptick in domestic leisure travel. Additionally, routes serving key destinations for overseas Filipino workers (OFWs) are anticipated to see increased traffic as many OFWs return home for graduation ceremonies.

Conclusion

Cebu Pacific’s strategic fleet expansion and robust operational strategy are set to position the airline for continued growth in 2024. With significant investments in new aircraft and a strong focus on enhancing service routes and passenger capacity, Cebu Pacific is well-prepared to capitalize on emerging travel trends and meet the increasing demands of both domestic and international markets.