Loading

Cebu Pacific Air 2017 outlook: a second year of slow growth as Philippines leader waits for A321neo

Cebu Pacific is planning another year of modest growth in 2017 as the Philippine airline group waits for the arrival of A321neos to unlock a new phase of expansion. Cebu Pacific’s seat capacity was flat in 2016 and is projected to grow in the low single digits in 2017.

The slow rate of growth is very unusual for an LCC in a growth market. GDP growth in the Philippines is expected to exceed 6% in both 2016 and 2017, making it one of the fastest growing economies in Asia.

Cebu Pacific has been ceding market share to the Philippine Airlines Group but the disciplined approach to capacity has driven higher yields and profits. The slower growth and reduction in market share is part of the Cebu Pacific strategy as the group prefers to wait for the new generation high density A321neo, which is slated to be delivered from 4Q2017, to resume expansion.

This CAPA Premium Analysis article is 3,323 words.

To access CAPA Premium Analysis you need a CAPA Membership

Your window into the latest insights

CAPA employs an industry-leading Analyst team based in Europe, North America, Asia and Australia who offer unique perspectives and independent and accurate commentary of critical industry developments globally. CAPA Members rely on our Analysis to unlock valuable insights and actionable intelligence to keep ahead of the game.

Big picture strategic view

Our Analysts don’t just report the news - they take a big picture strategic view of aviation dynamics, issues and trends and analyse the implications of these developments for you.

Global intelligence

The CAPA Analyst team is based globally to ensure our CAPA Members have access to independent, unique perspectives covering an entire spectrum of daily, worldwide commercial aviation developments.

Customise your Alerts

CAPA Members can use CAPA Alerts to receive daily, weekly or monthly and customised updates on our Analysis.

I'm very impressed by the factual and detailed analysis CAPA is always doing.

- CEO, Airline Member
To learn more, contact us:
Phone: +61 2 9241 3200 | Email: membership@centreforaviation.com