CEBU PACIFIC is targeting to reach 300 million passengers flown by 2022 as it works on increasing capacity and improving its network.
Candice Jennifer A. Iyog, vice president for marketing and distribution of the budget carrier, told reporters last week the new target is in line with the company’s earlier announced objective of reaching 200 million passengers by 2020.
“It’s a goal that we’ve set for ourselves — 300 millionth by 2022,” she said.
The Gokongwei-led carrier hit its 150 millionth passenger milestone in 2017, and ferried an additional 20 million passengers last year. It is aiming to fly another 22.5-23 million passengers by the end of 2019.
Ms. Iyog said in order achieve the company’s targets, Cebu Pacific is “upgauging” its fleet, or replacing smaller aircraft with bigger ones that could carry more passengers.
“There’s an upgauging on the aircraft… If we have slots right now that’s operated by a 180-seater, and we replace it with a 436-seater, that’s where the growth will be coming from, based already on the aircraft deliveries that we have scheduled,” she said.
Cebu Pacific is ramping up its fleet to have 83 aircraft by end-2022 from 71 aircraft as of end-2018. This will be comprised of eight units of Airbus A330s, 18 A320ceos (current engine option), five A320neos (new engine option), seven A321ceos, 27 A321neos, 16 ATR 72-600 and two ATR CF.
Aside from upgauging, the company is also adding more frequencies to its flights in gateways where congestion is not an issue, such as in Clark and Cebu.
“It’s going to be a mix of either more frequencies or larger aircraft… It’s connecting existing dots in our network,” Ms. Iyog said.
This means Cebu Pacific will link its other hubs to destinations where it is already flying. For example, it already operates flights to Narita from Manila and Cebu, and will be opening a new flight from Clark going to Narita as well. This Clark-Narita route is scheduled to launch next month.
“As we go along and grow those routes, and take delivery of more brand new aircraft, we’ll grow in the other hubs,” Ms. Iyog added.
In the first quarter, the carrier’s listed operator Cebu Air, Inc. recorded a 138.4% year-on-year increase in net income to P3.43 billion. This was driven by a growth in passenger volume during the period and higher average fares.
It is allocating about P27.1 billion for capital expenditures this year, to be used mainly for the acquisition of additional aircraft. — Denise A. Valdez
