Cebu Pacific Air: upgauging drives 40% growth at congested Manila

Following a commitment for 31 additional Airbus aircraft, Cebu Pacific is poised to grow capacity in Manila by more than 40% over the next five years as it accelerates an upgauging strategy. The Philippines' largest airline group is not expecting to be able to add any flights at Manila due to slot constraints, but the average seat capacity per departure should grow from 195 seats currently towards an average of nearly 280 seats.

Increasing densification is a sensible strategy for Cebu Pacific as the resulting reductions in unit costs enable it to maintain very low fares in a price sensitive market while maximising precious slots at its main hub. Over the next few years Cebu Pacific will stop operating turboprops at Manila, double the size of its widebody fleet and transition most of its Manila-based narrowbody flights from A320s to A321s.

Cebu Pacific is the launch customer of a new 460 seat high density configuration for the A330-900 and will receive 16 of the new type from 2021 to 2024. It is also the launch customer of A320neos in a new 194 seat configuration and plans to start receiving in 2020 A321neos in the 240 seat maximum configuration.

The airline group's overall seat capacity has grown marginally in the last three and half years as it has waited for the delivery of new generation aircraft, which have been delayed due to Pratt & Whitney engine issues. Cebu Pacific is resuming double digit capacity growth in 2H2019 and expects annual seat capacity growth of 10% to 11% from 2020 to 2024.