Cebu Pacific plans more expansion in 2016 with Guam, Honolulu & Melbourne but growth rate slows

Cebu Pacific plans to continue expanding its international network in 2016 as it launches services to the US and adds a second destination in Australia. The Philippine LCC added its fourth destination in Japan on 17-Dec-2015 and has launched four long haul destinations since Sep-2014, driving a 27% increase in RPKs through the first three quarters of 2015.

The Philippine carrier is again projecting double digit ASK growth in 2016, driven by expansion of its long haul operation. But seat growth will be a modest 2% to 4%, its lowest rate of expansion for several years, as Cebu Pacific is not planning expansion of its jet fleet.

Cebu Pacific has traditionally been the most conservative and rational of Southeast Asia's main LCCs. The group's flexible fleet plan and disciplined approach to seat capacity growth is a major strength.