Budget airline Cebu Pacific, or CEB, a low-cost airline led by the Gokongwei family, will finalize the purchase of major aircraft from global manufacturers by the first quarter of 2024, a move that will help the company sustainably meet the anticipated surge in travel demand in the long run. 

During a press chat last week, CEB president and chief commercial officer Xander Lao said European industrial giant Airbus and US plane maker Boeing will be presenting their bids for the order, known in the industry as request for proposal or RFP, within two weeks. 

"The RFP is still ongoing. It will be an exciting few weeks. Between Airbus and Boeing, we will a make the best financial decision. They will be here in the Philippines to make their pitch and presentations. Hopefully, we will end the process by the first quarter of next year," Lao said. 

Long delivery lead time

According to Lao, CEB needs to finalize the order as scheduled because of the long lead time needed for the delivery. 

"The earliest that the new fleet will arrive would be 2027 or 2028. Regardless if it is Airbus or Boeing, we are going to make sure it has the lowest cost and the most efficient engines. We have to go through the process," he added. 

For 2024, CEB plans to spend about P50 billion, bulk of which will be earmarked for the acquisition of 16 aircraft—bringing its current fleet of 76 to 92. 

Of the total fleet, Lao said the company expects anywhere between 10 and 20 aircraft to be parked because of Pratt & Whitney throughout the year, which it will mitigate by short-term leases. 

"We expect the Bulgaria Air to be in service by January until May. That's one. The second opportunistic one is if there is a way we can get some of our fleet from China, from the Airbus final assembly line in Tianjin. That is how we intend to mitigate some of the Pratt & Whitney issues," Lao explained.

"Having said that, even though we are going to have quite a number of aircraft grounded because of Pratt & Whitney, I think maybe some benefits are, one, is we are able to plan and see ahead," he added.

Driven by the improved passenger and travel demands, CEB reported a net income of P1.3 billion net income in the third quarter of the year.

The rosy bottom line profit this year was a turnaround from a P2.5 billion net loss in 2022 and P384 million in 2019.