Cebu Pacific (CEB) on Tuesday committed to the purchase of up to 152 Airbus A321neo aircraft for $24 billion or P1.4 trillion in local currency, thus far the largest aircraft order in Philippine aviation.
The airline said the memorandum of understanding with Airbus covers firm orders for up to 102 A321neo and 50 more A320neo purchase rights.
“The order is designed to provide Cebu Pacific with maximum flexibility to adapt fleet growth to market conditions, with the ability to switch between the A321neo and A320neo,” Michael Szucs, Cebu Pacific chief executive, said.
“When finalized, the deal will be a significant milestone and testament to CEB’s commitment to support the Philippine growth story,” he said of the transaction seen completed in the third quarter this year.
The airline has selected Pratt & Whitney GTF engines to power its future aircraft.
Cebu Pacific operates one of the youngest fleets in the world with a diversified fleet mix of 74 aircraft enabling the widest network coverage in the Philippines.
The airline has six Airbus 330s, 33 Airbus 320s, 19 Airbus 321s and 16 ATR turboprop aircraft.
It flies to 35 domestic and 25 international destinations across Asia, Australia and the Middle East.
Cebu Pacific posted net income of P2.24 billion in the first three months this year, up 108 percent from P939 million in the same period last year. It generated revenue totaling P25.3 billion during the period, a 21-percent increase from prior year.
It ferried over 5.5 million passengers in those three months, marking a 14-percent increase from last year and a 3-percent expansion from the preceding quarter.
