Cebu Air Inc., which owns the country’s largest budget carrier Cebu Pacific, told the Philippine Stock Exchange on Thursday it has budgeted P42 billion as capital expenditures this year, most of which will fund aircraft purchases.
The airline controlled by the Gokongwei Group expects to take delivery of three Airbus 320 NEOs, three A321 NEOs and four A330 NEOs this year to boost its fleet amid rising demand for travel.
The budget carrier also confirmed a report by BusinessWorld quoting Alexander Lao, Cebu Air president and chief commercial officer, that the airline expects a return to profitability in 2023, especially with a strong start in January.
Lao is hopeful for a full-year net income, but noted that the 2023 financial performance will depend largely on the movement of fuel prices and the peso exchange rate, among others.
Cebu Air said that by Lao’s estimate the entire airline industry, not just Cebu Pacific, lost around P100 million from the closure of Philippine airspace on January 1 after a malfunction in the air navigation system.
