Insider Spotlight
Philippine Airlines, Citi and UK Export Finance announced the successful closing of a new 12-year UKEF-covered loan that will fund one Rolls-Royce Trent XWB-97 engine for the flag carrier’s incoming Airbus A350-1000 aircraft.
Citi acted as sole lead arranger and facility agent.
The transaction marks Philippine Airlines’ return to export credit agency financing after more than a decade, underscoring renewed lender confidence as the carrier accelerates a multi-year fleet modernization program.
Driving the news
The Trent XWB-97 engine is a key component of Philippine Airlines’ long-haul strategy. It will power the A350-1000, part of a nine-aircraft order that positions the airline for expanded intercontinental connectivity.
The engine is also designed to be quieter and approximately fifteen percent more fuel efficient compared to earlier Trent engine generations.
The airline is simultaneously preparing for additional narrowbody growth. Philippine Airlines expects delivery of 13 Airbus A321neo aircraft starting 2026 and is refurbishing 18 A321ceo jets with upgraded cabins, the first of which was completed in September 2025.
What they’re saying
“This financing agreement with Citi and UKEF marks a significant step in our fleet modernisation and demonstrates the strength of our partnership with these institutions,” said Alvin Limqueco, Philippine Airlines senior vice president - chief supply chain officer.
“By working closely with Citi and UKEF, we are able to acquire the advanced Rolls-Royce Trent XWB-97 engine, reinforcing Philippine Airlines’ commitment to operational excellence and world-class customer service.”
Manish Bajaj, Citi Philippines’ corporate banking head, said, “Citi is proud to support Philippine Airlines through this landmark UKEF-backed financing transaction, which demonstrates the strength of PAL’s long-term growth strategy and access to global funding markets.” “The transaction highlights Citi’s commitment to delivering innovative and strategic financing solutions for our clients, while reinforcing our partnership with the Philippines’ flag carrier through its next phase of growth and expansion,” Bajaj said.
Khoa Huynh, Citi Aviation corporate banking director, added, “This landmark transaction is testament to the close partnership between all three parties, powering Philippine Airlines into its next chapter. We are excited to facilitate Philippine Airlines’ growth and next-generation passenger experience, whilst embedding operational resilience with this engine supporting a new fleet type.”
Tim Reid, CEO at UK Export Finance, said, “We are proud to have played a part in the first ECA-backed financing raised by Philippine Airlines in over 12 years. These new engines will drastically help to reduce emissions. This deal encapsulates UKEF's vision to support UK exporters and jobs, drive local growth and create global impact.” —Ramon C. Nocon | Ed: Corrie S. Narisma
