Cebu Pacific wary but not yet worried about US tolls
Cebu Pacific has no worries—for now—over the potential cost pressures arising from US President Donald Trump’s tariffs. Trump’s levies could also inflate the price tag of its P1.4-trillion aircraft order.
Xander Lao, president of the low-cost carrier, told reporters last week that Washington’s tariffs policy is still playing out. Thus, they are also on a wait-and-see mode.
“It is a developing story,” he said. “We can’t worry about something we can’t predict. Let’s see what the impact of those tariffs will be.”
Still, Lao said they have “contractual protections,” which means the airline could be shielded from cost fluctuations.
The Gokongwei-led firm sealed its order of up to 152 jets with European aircraft manufacturer Airbus last year. The first batch of aircraft is expected to arrive starting 2029.
The Association of Asia Pacific Airlines (AAPA) earlier warned that airlines might pay more for their aircraft orders. This is because of the US-sanctioned tariffs driving up the costs of engine and other jet components.
On the demand side, Lao has also remained optimistic despite the tariffs that are seen to potentially discourage discretionary spending.
“Everything seems to be doing quite well. We are going to the second quarter peak as well for the Philippines,” the company official said.
“So far, travel has been quite strong,” he added.
As of end-April, the low-cost airline had flown 9.2 million passengers, up 24.2 percent from the previous year.
Cebu Pacific estimated its passenger volume to grow by 20 percent this year after servicing 24.5 million guests in 2024.
