Cebu Pacific: US tariffs may affect P1.4-trillion Airbus deal

Low-cost carrier Cebu Pacific is closely monitoring the potential fallout from the reimposition of the United States’ new tariff policy on its record P1.4 trillion deal to purchase aircraft from European manufacturing giant Airbus SE.

- BY DEXTER BARRO II

In October last year, the Gokongwei-led airline finalized a landmark purchase agreement with Airbus and engine manufacturer Pratt & Whitney for what is considered the largest acquisition in Philippine aviation history.

Cebu Pacific specifically secured the order to acquire up to 152 A321neo (new engine option) aircraft.

The airline is set to receive the first batch of jets from Airbus by 2029.

Cebu Pacific President and Chief Commercial Officer Xander Lao said Airbus has yet to issue a notice to the carrier regarding potential issues with the order.

"It's a developing situation... So let's see what happens. But so far, we've not seen any impact to deliveries or operations," said Lao.