Cebu Pacific (CEB), the Philippines’ largest budget airline, has announced plans to expand its flight destinations to 60 by the end of the year. The airline expects to operate over 100 routes with approximately 2,700 weekly flights. CEB also anticipates a five to eight percent seat capacity growth in 2024 compared to 2023.
Candice Iyog, CEB’s chief marketing and customer experience officer, stated during a visit to Cebu on November 17, 2023, that the airline had experienced strong performance in the third and fourth quarters. This indicates a recovery from the impact of the COVID-19 pandemic, which caused a significant decline in global travel. Iyog expressed confidence in the airline’s progress, stating, “With the recovery in the fourth quarter, we are well on track with our plans.”
CEB has announced that it will begin flights to Danang, Vietnam, in December. Additionally, the airline has resumed flights to Shenzhen, China. Despite challenges related to fleet availability, CEB’s CEO, Michael Szucs, remains optimistic about the domestic market share, which reached 55 percent in October. He also mentioned that by the end of the year, the airline’s network will be at 103 percent of pre-pandemic levels. Domestic operations are expected to exceed pre-pandemic levels, while international operations are projected to reach approximately 93 percent.
However, CEB expects to have ten aircraft grounded in January, increasing to 20 by 2024. This is primarily due to the early inspection of Pratt and Whitney (P&W) engines that power the A320/321 NEO fleet. The airline clarified that this is not a safety issue, and inspection and replacement procedures are planned to ensure the continued operation of the P&W fleet. CEB has implemented measures to mitigate customer impact, including adjusting flight schedules and considering a short-term wet lease from Bul Air, Bulgaria Air’s charter company.
CEB has also focused on improving customer service by introducing enhanced customer recovery options and policies and strengthening customer support teams on the ground and online. The airline has been expanding its fleet and expects to end 2023 with 76 aircraft, with plans to increase to 92 in 2024. Furthermore, CEB is awaiting proposals from Airbus and Boeing for 100 to 150 narrowbody jets, representing the largest-ever commitment by an airline to the Philippine aviation industry.
Despite acknowledging the challenges that may arise in 2024 and beyond, Szucs remains optimistic about the long-term economic prospects of the Philippine aviation industry. He cited plans to privatize NAIA, the development of the Bulacan airport, and improvements to regional airports as factors that will alleviate congestion and increase connectivity. In the third quarter of 2023, CEB flew four million domestic passengers, surpassing pre-pandemic levels. The airline also experienced significant growth in international operations, with a 228 percent increase in passengers compared to the previous year. Revenues for the third quarter reached P23.3 billion, a 39 percent increase year-on-year and 23 percent higher than in 2019. CEB’s net income for the quarter was P1.3 billion, a turnaround from the previous year’s net loss of P2.5 billion and P384 million in the third quarter of 2019.
For more information, booking, and information, head to Cebu Pacific Air Official Website or call the reservation hotlines (02) 8702 0888 or (032) 230-8888.
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