Cebu Pacific allots P32.8 billion for 2022 capital expenses

MANILA, Philippines — Cebu Air Inc., the operator of budget carrier Cebu Pacific, has set aside P32.8 billion for this year’s capital expenditures with the company set to take delivery of seven new aircraft, its president and CEO Lance Gokongwei said.

“We continue to invest sensibly in the modernization of our fleet, and stay true in our promise to provide affordable and accessible air transport services for all,” Gokongwei said during the company’s annual stockholders’ meeting yesterday.

Gokongwei said Cebu Pacific would have seven new aircraft deliveries this year, while eight Airbus classic engine options (CEOs) would exit its fleet.

Cebu Pacific ended 2021 with 74 aircraft, the same number in 2020.

It accepted six new aircraft deliveries last year, including five Airbus new engine options (NEOs) that replaced six CEO planes.

“While we remain conservative in our 2022 fleet growth, over the next five years we will have 48 deliveries and 35 exits,” Gokongwei said.

“And in 2026, with 87 aircraft, of which 63 will be NEOs and 16 will be ATR turboprops, this replacement strategy fleet will keep us ahead in fuel efficiency and maintain the lowest in cost per seat kilometer flown,” he said.

Gokongwei said Cebu Pacific is nearing the pre-COVID level networks for its domestic network, flying 37 destinations, 54 routes, and at least 1,900 weekly flights.

“The resilience of our financial position throughout 2021 has enabled us not only to maintain our leadership in the domestic market, but also to grow well ahead of our competitors,” he said.

As of mid-April, Gokongwei said Cebu Pacific’s domestic market share stood at 60 percent, already ahead of its full year 2019 and 2021 domestic market shares which were both at 53 percent.

“We continue to boost our domestic capacity and estimate that by the end of May, our capacity share will increase further to 62 percent,” he said.

Gokongwei said forward bookings have likewise been strong and growing, noting that daily bookings are significantly higher than last year and better than any point in the last 12 months.

“Cebu Pacific looks forward to better days as we regain our position as one of the world’s strongest and best loved airlines. Our outlook gets brighter as we bank on domestic driven recovery this 2022 and look forward as international borders likewise reopen,” he said.