Cebu Pacific said Friday said it will revise downward its growth rate in 2024 on aircraft engine issues.
The airline unit of the Gokongwei Group said in a disclosure to the stock exchange that Pratt and Whitney (P&W) informed the company of a condition that would further affect maintenance plans for its engines.
Cebu Pacific said while there is no immediate impact on its operations, “we expect that this will affect our fleet availability in 2024.”
Several airlines grounded some of their aircraft that could not be immediately serviced by P&W early this year. On Sept. 14, 2023, The Directorate General of Civil Aviation (DGCA), India’s aviation regulator, asked P&W to identify the cause of engine damage in three incidents involving IndiGo flights and share data on engine failures globally.
Cebu Pacific said it expects its fleet to end 2023 with 76 aircraft and grow to 91 aircraft in 2024. It is the youngest fleet in the Philippines and includes 25 P&W-powered Airbus aircraft.
“We anticipate that a number of the aircraft will be affected next year by the recent announcement and as such the growth rate for 2024 will be revised downwards,” Cebu Pacific said.
Data from the Civil Aeronautics Board (CAB) showed that Cebu Pacific carried 7.69 million domestic and international passengers in the first six months of 2023. The airline posted a net income of P3.74 billion in the first half of the year, a reversal from P9.5 billion net loss in the same period last year.
Cebu Pacific’s revenues amounted to P43.55 billion, or 110.6 percent higher than P20.68 billion in the same period last year.
“We would like to assure our passengers that this is not a safety issue. The accelerated fleet inspection will ensure the continued safe operation of the P&W fleet,” it said.
Cebu Pacific said P&W committed to working closely with the airline to minimize any potential impact that the issue may have on its operations.
“Given the complexity of the situation in the near-term, P&W assured us that it has aligned the expertise and resources needed and will work with its partners to resolve things as efficiently as possible,” it said.
“Cebu Pacific has already taken a focused approach to proactively manage supply chain and operational challenges facing the industry. In recent months, we have put in place substantial contingency measures with current on-time-performance levels reaching as high as 90 percent. This reflects our commitment to providing our customers with a safe, reliable, and affordable travel experience,” it said.