Cebu Pacific stays upbeat as PH navigates tricky economic headwinds

Insider Spotlight

• Cebu Pacific says the long-term fundamentals of the Philippine economy remain intact despite short-term turbulence
• Management sees consumer demand, demographics and infrastructure upgrades supporting growth
• Airline stays committed to major fleet investments anchored on confidence in economic recovery

Cebu Pacific is keeping a confident long-term view of the Philippine economy even as recent indicators show the country in a challenging spot.

Speaking at the airline’s year-end briefing on Tuesday, Dec. 9, 2025, airline president and chief commercial officer Xander Lao stressed that Cebu Pacific’s massive fleet and network bets remain anchored on fundamentals that management believes will reassert themselves.

Why it matters

A soft third quarter and weakened consumer sentiment have raised concerns about whether the Philippine economy can keep pace with earlier forecasts. For an airline doubling down on fleet expansion and new routes, a slowdown could pose risk. Instead, Cebu Pacific is leaning in.

What they’re saying

Lao acknowledged the turbulence but emphasized that short-term dips do not change the airline’s calculus. 

“Clearly, you know the current environment is challenging, but we do think that the government is going to take the necessary steps to ensure investor confidence, consumer confidence as well,” he said.

He noted that factors dragging down recent growth — reduced government spending and weather-affected consumer activity — are temporary. “Overall, we are pretty confident in the long term growth prospects of the Philippine economy,” Lao said, adding that the Philippines remains a young, consumption-driven market with low travel penetration — fertile ground for sustained aviation demand.

Driving the optimism

The airline believes the pieces for growth are falling into place despite near-term pressure:

• A growing middle class continues to fuel domestic and international travel.
• Planned infrastructure upgrades, from Ninoy Aquino International Airport improvements to the upcoming Bulacan airport, are expected to ease long-standing bottlenecks.
• Cebu Pacific’s own network expansion — including new routes such as Riyadh and increased connectivity outside Metro Manila — positions it to capture returning demand.

The big picture

Cebu Pacific’s unwavering stance comes as it hits operational milestones: a 100-strong fleet, rising passenger volumes and enhanced fuel-efficient operations. Management argues these moves reflect not just resilience but conviction that recovery will stick.

What’s next

The airline expects capacity to continue expanding and sees long-term upside once infrastructure catches up. “All the factors that are needed for a successful airline story here in the Philippines are there,” Lao said.

For the Gokongwei family-controlled budget carrier, the message is clear: the turbulence is temporary, and the trajectory is still upward. —Daxim L. Lucas | Ed: Corrie S. Narisma