Airbus Secures $24 Billion Aircraft Order from Cebu Pacific in Record Deal
Airbus has successfully secured the largest purchase order in Philippine aviation history from Cebu Pacific for up to 152 A321neo jets, totaling a staggering $24 billion. The Gokongwei-led airline announced the signing of a binding memorandum of understanding (MOU) with Airbus, beating out rival Boeing for the deal.
The purchase agreement is expected to be finalized by the third quarter of this year. Cebu Pacific opted for Pratt & Whitney GTF engines to power the ordered aircraft, which include up to 102 A321neo and 50 A320neo purchase rights.
Cebu Pacific CEO Michael Szucs emphasized that the order provides the airline with flexibility to adjust fleet growth based on market conditions, allowing for seamless transition between the A321neo and A320neo aircraft.
The MOU comes after Cebu Pacific revealed its plan to expand its fleet to meet growing air travel demands. The final purchase order, costing twice as much as the initial $12 billion acquisition, reflects the airline’s commitment to enhancing its operations.
The airline expects the first set of aircraft to be delivered as early as 2027, with all deliveries scheduled to be completed by 2035. Cebu Pacific recently received an ATR 72-600, the sixth out of 18 aircraft set to be delivered this year. This addition will support the airline’s inter-island travel operations.
With a fleet that includes 15 turboprops, eight Airbus 330s, 39 Airbus 320s, and 21 Airbus 321s, Cebu Pacific has allocated a budget of P60 billion for aircraft-related expenses. The company reported a significant increase in net earnings in the first quarter, driven by a surge in passenger revenues and operational growth.
Cebu Pacific currently serves over 35 domestic and 24 international destinations, solidifying its position as a key player in the aviation industry.
