Tuesday, 03 June 2025, 1:51 am

    Cebu Pacific downplays tariff risks amid strong travel growth

    Cebu Pacific does not expect U.S. President Donald Trump’s tariff policies to affect its aircraft deliveries or impact overall travel demand, according to company president and COO Xander Lao.

    “It’s a developing situation…but we actually don’t know what the final outcome will be,” Lao said, stressing the airline has “contractual protections” in place to safeguard aircraft orders. “So far, we’ve not seen any impact to deliveries or operations because of this.”

    The airline took delivery of 17 Airbus A321neo jets in 2024 and received its first of four A330neos scheduled for this year. Cebu Pacific also signed a major deal in October 2024 for up to 152 A321neo aircraft, valued at $24 billion, with deliveries starting in 2029.

    Despite global economic uncertainties, Lao remains optimistic: “So far, travel has been quite strong,” he said, noting a 26 percent jump in 1Q 2025 passenger traffic. In April, passenger numbers rose 18.3 percent to 2.3 million, with domestic growth at 13.8 percent and international travel up 32.2 percent.

    Cebu Pacific’s year-to-date passenger count hit 9.2 million, up 24.2 percent from the same period last year. Load factor in April reached 83.8 percent amid a 20.1 percent increase in seat capacity. The airline operates one of the youngest fleets globally, with 99 aircraft serving 63 destinations.

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