MANILA: Philippine budget airline Cebu Pacific has entered into a short-term wet lease agreement with Saudi low-cost carrier flyadeal, leasing two Airbus A320 aircraft along with pilots, cabin crew and maintenance services. The move is aimed at monetising excess capacity during the Philippines’ traditionally lean travel period in July and August.
Under the agreement, Cebu Pacific will deploy the aircraft to flyadeal during the Saudi summer travel peak. The wet lease arrangement allows flyadeal to scale its operations in the high-demand period without the immediate need for additional aircraft or crew recruitment.
“We have this natural symbiosis where my peak is not his and vice versa,” said Steven Greenway, CEO of flyadeal, during a joint press briefing.
Michael Szucs, CEO of Cebu Pacific, noted that the deal marks a first for the airline, which has historically never leased out its aircraft. However, he signalled that more such agreements could follow as the airline continues to expand its fleet. “We’re testing the waters,” Szucs said.
Cebu Pacific had last year placed an order for at least 70 Airbus A321neo aircraft to strengthen its long-term fleet requirements. The new aircraft will gradually be added to its network in the coming years, opening the door for further leasing opportunities during the airline’s off-peak seasons.
The partnership also aligns with flyadeal’s broader regional ambitions. The Saudi budget carrier, a subsidiary of Saudia Group, has been ramping up its long-haul operations, recently ordering 10 Airbus A330neo wide-body jets. The airline expects three of the 10 aircraft to be in service by July 2027, with two more arriving later that year.
“Southeast Asia is our key destination for these aircraft,” Greenway added in an interview, identifying the Philippines, Malaysia and Indonesia as high-potential markets. “Obviously, the Philippines is interesting because of our partnership with Cebu Pacific.”
Flyadeal also views the Philippines as a key market to capture travel demand to and from the Gulf region, especially among overseas Filipino workers and Muslim pilgrims travelling to Saudi Arabia for the annual Haj pilgrimage.
The agreement represents a strategic use of underutilised assets for Cebu Pacific while offering flyadeal operational flexibility in its growth trajectory. It also underscores the increasing collaboration between budget carriers as they seek to optimise fleet use and expand into new markets amid ongoing global recovery in the aviation sector.–REUTERS
