International aircraft leasing company Avolon has marked a milestone, announcing it has completed the delivery of its 100 Airbus A320neo. The aircraft in question was delivered to Philippines carrier Cebu Pacific as part of a three aircraft agreement.
Second A320neo delivery for Cebu Pacific
The delivery to Cebu Pacific is the second A320neo delivery under an agreement made earlier this year for the Philippines low-cost carrier. The airline has agreed to lease three new A320neos in total.
The third aircraft is scheduled to be delivered later this month following which Avolon will have 12 aircraft on lease with Cebu Pacific.
Cebu Pacific has seen the first quarter of 2023 out with a flurry of activity with respect to the upgrade of its fleet.
Fleet upgrade programme
All told, the Philippines carrier is anticipating delivery of three A320neo, three A321neo, and four A330neo aircraft to its operational fleet in 2023.
As part of the airline’s modernization, Cebu Pacific is replacing its existing aircraft with new fuel-efficient aircraft by 2028.
Speaking on the occasion of the latest A320neo delivery, Alex Reyes, Chief Strategy Officer, Cebu Pacific commented:
“The delivery of this latest A320neo aircraft reflects our continued progress towards our goal of transitioning to a more fuel-efficient fleet.”
“We are looking forward to completing this delivery order with Avolon, which will help further strengthening our position as one of Asia Pacific’s leading low-cost carriers.”
This month the airline also delivery of one additional Airbus A330-900 aircraft from lessor AerDragon Aviation Leasing.
Return to profitability
The recently released performance figures for the first quarter of 2023 show Cebu Pacific returning to profitability.
Driven by the sustained pent-up demand for air travel, the carrier has now showed the first profitable return since the start of the pandemic.
For the first three months of 2023, Cebu Pacific posted an operating profit of approximately Ps1.2 billion, or US$21.7 million.
The carrier reported a very healthy passenger uplift of 4.8 million for quarter one 2023, which represents a doubling of passenger uplift for the comparable period last year.
Avolon is on track to hit its target of its fleet comprising 75% new technology aircraft by 2025. The company has a significant order book pipeline for the A320neo family of aircraft (A320neo/A321neo), with commitments to purchase a further 184 of this aircraft type as at March 31 2023.
The A320neo delivers 20% fuel savings and CO2 reduction compared to previous-generation Airbus aircraft.
Speaking on the milestone occasion of the recent delivery, Paul Geaney, President and Chief Commercial Officer, Avolon commented:
“As one of the largest A320neo family aircraft customers, today’s announcement marks an important milestone in our long-standing partnership with Airbus.”
“We are also delighted to further strengthen our relationship with Cebu Pacific, supporting both the evolution of its fleet and sustainability objectives. It is great to see our customers in Asia increasing their fleet size to meet the high demand for travel in the region.”