Cebu Pacific
Cebu Pacific, is a Philippine low-cost airline based in Pasay, Metro Manila. Founded in 1988, the airline is the first low-cost carrier in Asia and is also the largest airline in the Philippines by fleet size. It offers scheduled flights to both domestic and international destinations. The airline operates flights from five bases in Cebu, Clark, Davao, Iloilo, and Manila.
With its low-cost business model and extensive destination network, Cebu Pacific became the Philippines' largest airline based on number of passengers flown on domestic and international routes in 2010, overtaking rival Philippine Airlines. According to Civil Aeronautics Board data, Cebu Pacific flew a total of 2.45 million passengers in the first quarter of 2010, nearly 110,000 more than PAL, which carried 2.34 million systemwide during the same period.
History
Foundation and growth (1988–2006)
Cebu Pacific was established on August 26, 1988. Republic Act No. 7151, which grants a legislative franchise to Cebu Air, Inc. to operate, was approved on August 30, 1991. The airline began operations on March 8, 1996, with its first flight from Manila to Cebu. Domestic services began following market deregulation by the Philippine government. The airline was subsequently acquired by JG Summit Holdings, owned at the time by John Gokongwei.The airline temporarily ceased operations in February 1998 after being grounded by the government following the crash of the crash of Flight 387 that killed 104, but resumed services later the next month following re-certification of its aircraft. It initially started with 24 domestic flights daily among Metro Manila, Metro Cebu, and Metro Davao. By the end of 2001, its operations had grown to about 80 daily flights to 18 domestic destinations.
In the 2000s, Cebu Pacific was granted rights to operate international flights to the region, including Malaysia, Indonesia, Singapore, Thailand, South Korea, Hong Kong, and Guam. International flights were launched on November 22, 2001, with a twice-daily service to Hong Kong. Thrice-weekly flights to Seoul commenced on March 1, 2002, followed by Singapore on October 1. Other regional flights were introduced and suspended later; however, including flights to Singapore and from Manila via Subic to Seoul due in part to the effects of the SARS epidemic.
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On November 10, 2005, Cebu Pacific launched "Go", a fare discount program that permanently reduced its fares by half. The move was done to increase the airline's revenue by twenty percent. Following this, Cebu Pacific experienced significant passenger growth, hiking up its sales volume by ninety percent. Its president and CEO, Lance Gokongwei, anticipated that with the low fares, air travel would be cheaper than sea travel. He further added that:
The airline resumed its Manila–Singapore flights on August 31, 2006, and launched a direct flight from Cebu to Singapore on October 23. It was the first low-cost airline to serve the Cebu-Singapore-Cebu sector, and competing directly with Singapore Airlines subsidiary SilkAir, the only Philippine carrier serving the route for years until Philippine Airlines resumed direct service in 2017. Cebu Pacific's direct Cebu–Hong Kong flights began on October 2, 2006, making it the Philippine carrier to serve the Cebu-Hong Kong-Cebu route after PAL terminated its direct service and began code-sharing with Cathay Pacific on the route. Manila–Bangkok flights were also launched in the same year.
Initial expansion (2007–2011)
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On May 8, 2008, Cebu Pacific opened Francisco Bangoy International Airport in Davao City as its third hub and launched direct flights from Davao to Singapore, Hong Kong, and Iloilo. In late 2007, Cebu Pacific announced plans to launch non-stop flights to the United States West Coast, Houston, and Chicago by mid 2009.
Cebu Pacific's plans to begin international flights from Clark in 2007 were initially unsuccessful when its request was denied. The nations involved came to an agreement that Cebu Pacific would be only allowed to operate charter flights from Clark to the respective countries' airport. Only Singapore initially agreed to allow Cebu Pacific to fly scheduled flights from Clark. After launching flights between Clark and Cebu in 2006, on November 8, 2008, the airline commenced international flights from Clark to Hong Kong, Macau, Bangkok and Singapore, making Clark its fourth hub.
On May 28, 2008, Cebu Pacific was named as the world's number one airline in terms of growth. The airline was also ranked fifth in Asia for Budget Airline passengers transported and 23rd in the world. On November 20, 2008, it started operating direct flights to Japan, starting with Osaka.
In August 2009, Cebu Pacific became the first airline in the Philippines to use social media; the airline created a fan page on Facebook and Twitter. In October 2010, the airline completed an initial public offering of 30.4% of outstanding shares, raising prior to an exercise of an overallotment option. By January 2011, the airline flew its 50 millionth passenger from Manila to Beijing.
Further growth and re-branding (2012–2020)
Cebu Pacific continued its network expansion in the 2010s. Continuing its regional expansion, it launched flights to Siem Reap and Xiamen in 2012. Domestically, it opened two local bases in Kalibo and Iloilo. It also expanded its Japanese operations, launching flights to Tokyo and Nagoya in March 2014, followed by Fukuoka in December 2015.After taking delivery of its first two Airbus A330-300s, Cebu Pacific commenced international long-haul flights on October 7, 2013, to Dubai. Between 2014 and 2015, it launched flights to more destinations in the Middle East, including Kuwait City, Doha, Dammam, and Riyadh. It also launched flights to Sydney—its first destination in Australia—followed by Melbourne in 2018. All Middle Eastern destinations, except Dubai, were terminated in 2017.
On December 29, 2014, Cebu Pacific was fined following the numerous flight cancellations and delays during the December 2014 Christmas peak season.
On January 8, 2015, the airline flew its 100 millionth passenger. On June 1, Cebu Pacific revealed its new logo that represents the colors of the Philippines and also symbolizes as an evolution of a low-cost pioneer. The airline received its first Airbus A320 painted in the new livery on January 22, 2016.
In March 2016, Cebu Pacific launched flights to Guam, making it the first and only destination in the United States. This route was suspended in December 2019, along with Siem Reap.
On October 20, 2017, Cebu Pacific opened Laguindingan Airport as its seventh base. On the same day, it flew its 150 millionth passenger to Cagayan de Oro. In 2018, Cebgo, Cebu Pacific's regional subsidiary, launched flights to Basco, Batanes.
COVID-19 pandemic (2020–2022)
The COVID-19 pandemic significantly impacted the operations of Cebu Pacific in 2020, causing a three-month suspension of operations during the enhanced community quarantine in Luzon and a reduction of its workforce. Due to low passenger demand, the airline laid off 1,300 employees that year, and sent fourteen aircraft to indefinite storage in Alice Springs. By the end of the year, it reported a net loss of, its first annual loss since 2008.File:Cebu Pacific Airbus A330-900neo.jpg|thumb|An Airbus A330-900 of Cebu Pacific on final approach at Ninoy Aquino International Airport. This particular aircraft has a '25' decal on the left side of the cockpit to commemorate the airline's 25th anniversary in 2021.
On March 8, 2021, Cebu Pacific celebrated its twenty-fifth anniversary. In May, it closed three fundraising transactions totaling to help the airline recover from the pandemic, which consisted of a loan from government-owned financial institutions and private banks, from preferred stock, and from convertible bonds. As several COVID-19 variants emerged that year, which led to another spike in cases, it widened its losses to.
As travel demand recovers, it started rehiring retrenched employees in November 2021. In March 2022, Cebu Pacific flew its 200 millionth passenger from Manila to Cebu. By December 2022, the airline operated at 92% of pre-pandemic levels.
On December 5, 2022, Lance Gokongwei resigned as the airline's president and chief executive officer −a position he held since the airline's inception in 1996. His resignation took effect on January 1, 2023, and was subsequently elevated to chairman. Alexander Lao was then appointed president, while Michael B. Szucs assumed his role as CEO.
Post-pandemic recovery and third expansion (2023–present)
On January 25, 2023, Cebu Pacific launched its new campaign, "Let's Fly Every Juan", at a press conference at the Ayala Museum. It then resumed its remaining international flights that were suspended during the pandemic, including China, with the exception of Beijing. On April 21, 2023, Cebu Pacific reopened its Pampanga hub at Clark International Airport. By the end of 2023, after three consecutive financial years of losses, Cebu Pacific reported its first full-year post-pandemic profit.On February 28, 2024, Cebu Pacific was awarded the Best Airline award at the Routes Asia Awards 2024 for its "exceptional contributions to airport and destination marketing in the Asia Pacific region". It was also awarded Best Low-Cost Airline Brand and Most Sustainable Low-Cost Airline in the Philippines for 2023 by the World Economic Magazine.
In July 2024, Cebu Pacific shelved its plans to expand its long-haul operations. It then reduced its flights to China due to weak demand amid geopolitical tensions, and likewise terminated flights to Beijing. The airline focused instead on expanding regionally within a five-hour radius, launching flights to secondary cities in Southeast Asia. On July 16, 2024, it expanded its Bangkok operations by launching thrice-weekly flights to Don Mueang International Airport to complement its twice-daily Suvarnabhumi flights. As part of its regional expansion, it started flying thrice weekly to Da Nang on December 7, 2023, and Chiang Mai on October 29, 2024. It also returned to Kaohsiung after a fifteen-year hiatus in August.
Continuing its domestic expansion, Cebu Pacific expanded its regional network in Visayas and Mindanao, launching eighteen new inter-island routes from its hubs in Cebu, Davao City, and Iloilo, as well as select flights from Clark. Likewise, new international services from these hubs were either launched or revived: new direct flights from Cebu to Bangkok and Osaka began in mid-October, while Davao–Hong Kong services were relaunched in the same month including a new Davao–Bangkok service. It also resumed international flights from Iloilo International Airport after a four-year hiatus.
On December 11, 2024, Cebu Pacific flew its 250 millionth passenger from Singapore to Manila. On January 16, 2025, it launched direct flights to Sapporo—a destination Philippine Airlines once served from 2018 to 2020, then relaunched as a seasonal destination in 2025. On April 7, direct flights were launched between Cebu and Ho Chi Minh City, in response to PAL launching its own service a month later.
In May 2025, Cebu Pacific struck a "wet lease" deal, leasing two Airbus A320 jets to Saudi carrier flyadeal during the Philippines' lean tourist months of July and August—marking Cebu Pacific's first venture into aircraft leasing.