Cebu Pacific Secures BDO Financing for Two New Airbus A320neo Aircraft

MANILA, Philippines — BDO Unibank Inc. is providing financing to Cebu Pacific for the acquisition of two more Airbus A320neo aircraft to its fleet as the budget carrier expands capacity to meet growing demand for domestic and regional travel. The Sy-led bank served as the sole lender for the transaction, although the companies did not disclose the acquisition cost, loan amount or financing terms. For BDO, the transaction reflects the lender’s continued participation in financing large capital investments in sectors expected to benefit from stronger consumer demand and economic activity. “BDO remains committed to supporting strategic investments that enable our clients to grow and adapt in a dynamic environment,” BDO Capital president and CEO Eduardo Francisco said. “Our partnership with Cebu Pacific reflects our confidence in the aviation sector’s continued recovery and long-term potential,” Francisco said. The deal further deepens the longstanding relationship between BDO and Cebu Pacific, with the country’s largest bank supporting the carrier’s fleet modernization and capacity expansion plans. The additional aircraft are expected to allow Cebu Pacific to mount more flights and improve connectivity across its network as passenger traffic continues to recover. The investment also forms part of the airline’s broader strategy to strengthen its position in the country’s low-cost travel market. “We value BDO’s continued support as we strengthen our operations and expand our fleet,” Cebu Pacific chief financial officer Mark Cezar said. “These new aircraft will enable us to better serve our passengers while advancing our long-term growth and sustainability goals,” Cezar said. The A320neo, or new engine option, is designed to consume less fuel and produce lower carbon emissions and noise levels compared with previous-generation aircraft. The model is commonly used for short to medium-haul routes, making it suitable for Cebu Pacific’s domestic and regional operations. Fuel-efficient aircraft could also help the carrier manage operating costs, with jet fuel representing one of the largest expenses of airlines and remaining vulnerable to fluctuations in global oil prices and foreign exchange rates.