CebuPac enters jet leasing business

While expanding its fleet, Cebu Pacific is leasing two of its jets to Saudi Arabian low-cost airline Flyadeal amid a global supply chain crunch that has affected aircraft availability.

The two carriers signed the wet-lease agreement for two months—the latter part of June to August—to cater to anticipated summer peak flying season in the Middle Eastern country.

This partnership is a first for Cebu Pacific, which flies to Middle East via Dubai.

In this wet leasing arrangement, Cebu Pacific will not only lease an aircraft but it will also provide flight and cabin crew to operate the jet.

“With Cebu Pacific’s growing fleet, we seek to maximize the potential of our increased capacity through all months of the year,” Cebu Pacific CEO Mike Szucs said.

Szucs explained that third quarter is usually a lean period for the carrier, making it ideal to lend the aircraft instead of having them parked. Moving forward, the budget carrier is mulling over entering into more wet leasing deals.

Cebu Pacific entered into this deal despite the ongoing supply chain concern—lack of spare parts—that has left many aircraft parked for a longer period for maintenance.

The Gokongwei-led airline started 2025 with 98 aircraft, targeting to end the year with 100 units.

By 2029, it will start receiving the first batch of jets it ordered from European aircraft manufacturer Airbus. The airline finalized a P1.4-trillion order of up to 152 jets last year.

“This was the starting point for wide-ranging commercial discussions covering a broad range of areas including more immediate needs of wet-leasing aircraft for Flyadeal’s busy upcoming summer season,” Flyadeal CEO Steven Greenway said.

The Gokongwei-led airline is also looking into leasing aircraft from Flyadeal in the future.

Flyadeal, founded in 2017, flies to 40 destinations. It has bases in Jeddah, Riyadh and Dammam.

Outside the Philippines, the Saudi Arabian airline is also looking at establishing more presence in Southeast Asia.