By Ashley Erika O. Jose, Reporter
CEBU PACIFIC (CEB) has received three more aircraft, representing more than half of its projected aircraft deliveries for the year, the budget carrier said on Monday.
“Our continuous fleet expansion efforts underscore our commitment to provide safe, affordable, and accessible flights,” Cebu Pacific President and Chief Commercial Officer Alexander G. Lao said in a statement.
The airline said three Airbus jets arrived at the Ninoy Aquino International Airport, including one A330neo, one A320neo, and one A320ceo, representing more than half of its expected 17 aircraft deliveries this year.
“As the demand for air travel continues to rise, we are confident that we will be able to cater to more passengers looking to connect with other people or discover new destinations with Cebu Pacific,” Mr. Lao said.
Airbus’s new-engine option aircraft promise significantly improved fuel efficiency and can use sustainable aviation fuel (SAF). Currently, all Airbus aircraft are certified to operate with an SAF blend of up to 50%.
Cebu Pacific hopes to adopt SAF across its network by 2030.
To date, Cebu Pacific operates a diversified fleet with a total of nine Airbus A330s, 39 Airbus A320s, 22 Airbus A321s, and 15 ATR turboprop aircraft.
Last month, the company announced that it would order up to 152 A321neos worth P1.4 trillion or $24 billion, which is touted as the largest aircraft order in the country.
Separately on Monday, Cebu Air, Inc., the budget carrier’s operator, said that the Securities and Exchange Commission (SEC) has approved the company’s restructuring plan.
On July 17, Cebu Air’s board of directors greenlit the company’s proposal to pursue an equity restructuring of its deficit in 2023.
The company proposed to use its additional paid-in capital of P20.66 billion to clear its deficit amounting to P16.27 billion, leaving it with a capital of P4.39 billion.
“The equity restructuring will not involve a change in the par value of CEB’s shares, nor will it require an infusion of any additional paid-in capital; neither will the equity restructuring result in any change in the number of CEB’s issued, outstanding, or listed shares,” the company told the stock exchange.
For market watchers, this move signifies the company’s intention to improve its balance sheet, allowing it to be attractive to investors.
“This may be aimed at cleaning up its balance sheet ahead of potential fundraising for its massive expansion plan,” Chinabank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.
Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce described the proposal as a “significant financial maneuver.”
“CEB aims to clean up its balance sheet. This move can make the company more attractive to investors by presenting a healthier financial position,” he said.
Mr. Arce said that while the restructuring plan does not directly fund its aircraft purchase, it will position Cebu Pacific to potentially raise funds through other means, such as equity or debt, or by simply “improving its financial health and credibility.”
“Cebu Pacific’s decision to restructure now is likely aimed at strengthening its financial position in preparation for significant future investments,” Seedbox Securities, Inc. equity trader Jayniel Carl S. Manuel likewise said in an e-mail.
Mr. Manuel said the restructuring would give the company more flexibility in managing its “substantial commitments.”
“A more stable financial outlook can boost investor confidence, potentially leading to an improved stock price and easier access to capital markets for future funding needs,” Mr. Arce said.
