Cebu Pacific, the budget carrier brand of the Gokongwei Group’s listed unit Cebu Air Inc., has signed a wet lease agreement with Vietnam Airlines as the Philippine carrier looks to generate more revenue from its growing fleet.
Under the deal, Cebu Pacific will deploy one Airbus A320neo, complete with its pilots and cabin crew, to Vietnam Airlines from July 15 to Sept. 7 to support the flag carrier’s domestic operations during the busy travel season.
The aircraft will be based in Ho Chi Minh City and operate flights to Cam Ranh, Phu Quoc, Vinh, and Da Nang.
The agreement, whose financial details weren’t immediately disclosed, underscores a growing trend in Asia’s aviation sector as airlines tap wet lease arrangements to bridge capacity gaps while waiting for new aircraft deliveries and responding to seasonal spikes in passenger demand.
The deal also opens another source of earnings for Cebu Air.
Chief Financial Officer Mark Cezar said the airline’s expanding fleet allows it to deploy aircraft where demand is strongest, including overseas during periods of softer travel demand in the Philippines.
The partnership also broadens Cebu Pacific’s business beyond passenger operations by providing aircraft and operational support to other carriers while strengthening its presence in the fast-growing Southeast Asian aviation market.
The airline has steadily built its credentials in the aircraft leasing business. Last year, it provided two Airbus A320 aircraft under a wet lease to Saudi Arabian budget carrier flyadeal during the Middle East’s peak summer travel season. In 2024, Cebu Pacific also entered into a damp-lease agreement with Bulgaria Air to augment capacity in the Philippines as travel rebounded after the pandemic.
The latest agreement comes as regional airlines continue to face aircraft supply constraints, making short-term leasing arrangements an increasingly important tool for managing capacity.
Cebu Pacific, the country’s largest airline, operates a network of 35 domestic and 26 international destinations with a fleet of 100 aircraft. As more planes join that fleet, the carrier is positioning itself not only as a low-cost airline but also as a provider of aviation capacity across the region, turning idle aircraft into a business opportunity.
