TOULOUSE- Philippine-based carrier Cebu Pacific (5J) announced Today (July 2, 2024) its plan to purchase up to 152 Airbus planes, marking the largest aircraft order in the country’s aviation history, valued at $24 billion.
Cebu Pacific has signed a binding memorandum of understanding with Airbus, which includes firm orders for up to 102 A321neo aircraft and purchase rights for 50 A320neo.
Cebu Pacific A321neo Order
“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,” said Cebu Pacific CEO Michael Szucs in a statement.
Cebu Pacific announced it will equip its new Airbus planes with Pratt & Whitney engines, despite past issues with the manufacturer’s engines that grounded at least 10 of the airline’s planes.
“When finalized, the deal will mark a significant milestone for the local airline industry,” stated Cebu Pacific CEO Michael Szucs. The transaction is expected to be completed in the third quarter of the year.
Following the COVID-19 pandemic, the airline industry has rebounded strongly, with passenger numbers and revenues projected to hit record highs this year, according to the International Air Transport Association (IATA). In June, IATA forecasted nearly five billion passengers flying in 2024, with revenues nearing $1 trillion.
However, airlines are contending with rising costs due to parts and labor shortages, as well as challenges related to climate change.
Total expenses for airlines are projected to reach a record high this year, increasing by 9.4 percent to $936 billion, according to IATA.
At the Singapore Airshow in February, Cebu Pacific CEO Michael Szucs told AFP that the airline faced a “shortfall in capacity” due to grounded aircraft and delivery delays. “It’s never been more difficult to keep the fleet flying,” he said.
Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News.
The post Cebu Pacific Buys 152 New Airbus A321neo for $24 Billion appeared first on Aviation A2Z.