As Cebu Pacific celebrates its 30th anniversary, the Philippine low-cost carrier is positioning itself to capitalize on the country’s newly relaxed visa requirements for Chinese travelers.
The airline said it plans to restore pre-pandemic routes to China and take delivery of seven aircraft in 2026.
Speaking during a press interview on the day of the airline’s milestone celebration, Xander Lao, President and Chief Commercial Officer, welcomed the government’s decision to bring the Philippines in line with its Southeast Asian neighbors on visa policy. He called it “a really great development” that makes the country more competitive.
While it’s too early to gauge booking trends from the policy shift, Lao emphasized the airline has the capacity and aircraft ready to rebuild connectivity to China.
“We haven’t necessarily seen any movement just yet in terms of overall bookings, but to be honest, it’s quite early,” Lao said. “The government just announced it this week. But we are excited if we do see a buildup in terms of traffic from China—clearly we have the capacity to add flying.”
Rebuilding China connectivity
China was a key market for the Philippines before the pandemic, with Cebu Pacific alone operating 35 weekly frequencies to Chinese cities in 2019. That number reduced to just seven weekly frequencies combined across the market today.
The carrier is currently seeing strong outbound traffic, with more Filipinos traveling to China. But Lao expects the visa policy change could reverse that imbalance over time.
“We do have the capacity, we do have the aircraft to bring back [routes] should the opportunities arise,” he said. “It was a key market for the Philippines back in 2019, and clearly that’s something we’d love to reestablish.”
International expansion and diversification
Beyond China, Cebu Pacific is focusing its 2026 international strategy on strengthening recently launched hubs rather than opening new routes. The carrier has made progress on international connections from Davao and Iloilo and will launch service to Riyadh in March 2026 as its primary new international route for the year.
The airline is also diversifying its revenue base geographically to offset Philippine Peso weakness, which affects roughly 70% of its costs that are denominated in US dollars. Sales from Japan, Hong Kong, China, and Australia are growing as the carrier invests in overseas distribution.
Japan and Australia emerged as the two fastest-growing markets for passenger traffic, according to Department of Transportation data, benefiting from Cebu Pacific’s capacity additions and joint promotional efforts with the Philippine tourism board.
“We’d like to see a better mix in terms of our passenger distribution,” Lao said. “For every airline, the home carrier will always carry a majority of their countrymen, but we’d like to see more foreign travelers taking local carriers.”
Fleet expansion amid engine issues
Cebu Pacific expects to take delivery of seven aircraft in 2026: two widebodies and five narrowbodies, as it targets capacity growth of roughly 10% year-over-year, similar to 2025 levels.
However, the carrier continues to manage grounded aircraft due to ongoing Pratt & Whitney engine issues affecting its new-generation GTF-powered fleet. The number of grounded aircraft fluctuates weekly, and Lao said the industry-wide problem likely won’t fully resolve for another couple of years.
“It’s not an issue that’s isolated to Cebu Pacific—it’s anyone that has a Pratt & Whitney new generation engine,” he said, adding that the airline has already factored supply chain challenges into its conservative growth forecast.
The carrier also strengthened its ATR turboprop fleet through the acquisition of local carrier AirSwift, bringing its total to 20 ATR 72-600 aircraft. Those aircraft will eventually relocate from Manila’s congested Ninoy Aquino International Airport (MNL) to Clark International Airport (CRK) as part of a government directive to optimize scarce terminal capacity at the capital’s main gateway.
Lao said Cebu Pacific is working closely with airport authorities on the timeline for the terminal transfer, which he expects could happen in the third quarter, though no firm date has been set.