The airline, the country’s largest by fleet size and passengers, has cut its capacity growth target to 15 percent from as much as 25 percent in what president and chief commercial officer Xander Lao said was “one of the few disappointments we’ve had” this year.
Lao said 12 Airbus A320neos, equivalent to 12 percent of their 100-aircraft fleet, remain grounded for inspections due to the issue affecting Pratt & Whitney engine customers worldwide.
These planes are used for the company’s domestic and regional international routes.
“That’s four more [planes] than we initially expected. If those aircraft were available to us, we could have had even better passenger numbers for the second quarter given the very robust demand,” Lao said in a briefing with editors.
Big picture
The engine issue, amplified by longstanding supply chain constraints, has been a drag on an otherwise strong period of growth for Cebu Pacific, with passenger demand rising and hubs expanding in Davao, Iloilo, and Clark.
From January to June this year, Cebu Pacific’s volume jumped nearly 21 percent to 13.9 million passengers.
Despite the slowdown, the airline is still on track for a record high in 2025 but will fall short of its 30 million passenger goal after carrying 24.5 million last year.
Problems to persist for two more years
The flaw, found in powdered metal parts used in critical components of Pratt & Whitney geared turbofan engines, has grounded hundreds of Airbus A320neo aircraft worldwide.
Inspections and engine overhauls were originally expected to be completed by the end of next year, but Cebu Pacific chief financial officer Mark Cezar said this timeline is now likely to be pushed back further.
“That’s pretty clear now that’s not going to happen. Hopefully, we’re probably looking at end 2027, the first half of 2028,” he said.
One-off gain
Cebu Pacific’s net income surged 153 percent to P9 billion in the first half of 2025, lifted by record second-quarter earnings and a P4.76-billion one-time gain from free replacement engines.
“Part of what we’ve been able to secure is a package of four engines, free of charge, from manufacturer Pratt & Whitney,” said Cezar.
“This forms part of our compensation package and also a mitigation for the grounded aircraft,” he added.
Cebu Pacific’s operator is paying dividends for the first time since 2019, after repairing its balance sheet and sustaining growth following the pandemic halt in payouts.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
