Cebu Pacific Celebrates 30 Years, Targets China Travel Surge with Visa Ease

As Cebu Pacific marks its 30th anniversary, the airline is gearing up to take advantage of the Philippines’ recently relaxed visa requirements for Chinese visitors. This strategic move is set to enhance travel connectivity, particularly to China.

The airline plans to reinstate its pre-pandemic routes to China and is scheduled to receive seven new aircraft by 2026. During a press conference celebrating its milestone, Xander Lao, President and Chief Commercial Officer, praised the government’s decision to align the Philippines’ visa policies with those of other Southeast Asian countries. He highlighted this as a significant development that bolsters the Philippines’ competitiveness in the region.

While it’s still early to assess how this policy shift will affect booking trends, Lao reassured that the airline has the necessary resources and aircraft ready to rebuild its connectivity to China. He noted, “We haven’t seen any significant change in bookings yet, but it’s premature to make conclusions since the announcement was made just this week.”

Rebuilding China connectivity

Before the pandemic, China was a vital market for Cebu Pacific, operating 35 weekly flights to various Chinese cities in 2019. Currently, this number has decreased to just seven weekly flights. However, the airline is witnessing strong outbound travel as more Filipinos visit China, and Lao is optimistic that the recent visa policy changes may help to restore balance in travel flows.

“We are well-prepared with the aircraft and capacity to reintroduce routes if opportunities arise,” he stated. “China was a crucial market for us in 2019, and we’d love to reestablish that connection.”

International expansion and diversification

Aside from focusing on China, Cebu Pacific has outlined its international strategy for 2026, emphasizing the strengthening of recently launched hubs rather than creating new routes. The airline has made significant progress in expanding international flights from Davao and Iloilo, with a service to Riyadh scheduled to launch in March 2026 as its major new route for the year.

To diversify its revenue sources and mitigate the impacts of Philippine Peso depreciation—which affects about 70% of its costs denominated in US dollars—the airline is expanding its sales footprint internationally. Cebu Pacific is reporting growth in markets such as Japan, Hong Kong, China, and Australia, supported by investments in overseas distribution channels.

According to data from the Department of Transportation, Japan and Australia are among the fastest-growing markets for passenger traffic, benefiting from Cebu Pacific’s capacity enhancements and joint promotional campaigns with the Philippine tourism board.

“We aspire to achieve a more balanced distribution of our passenger demographics,” Lao remarked. “While local carriers traditionally carry a majority of domestic travelers, we hope to attract a larger number of international passengers.”

Fleet expansion amid engine issues

Cebu Pacific is set to welcome seven new aircraft in 2026, comprising two widebody and five narrowbody planes, aiming for a year-over-year capacity growth of around 10%, mirroring 2025’s levels. However, the airline is currently managing grounded aircraft due to ongoing complications with Pratt & Whitney engines affecting its new-generation fleet. The number of grounded planes fluctuates, and Lao indicated that resolution of this industry-wide issue may take another couple of years.

“This is not a problem unique to Cebu Pacific; it’s affecting all airlines utilizing Pratt & Whitney’s new generation engines,” he explained. The airline has factored these supply chain difficulties into its cautious growth projections.

Additionally, Cebu Pacific is enhancing its ATR turboprop fleet following its acquisition of local carrier AirSwift, resulting in 20 ATR 72-600 aircraft. These will eventually be transferred from Ninoy Aquino International Airport (MNL) to Clark International Airport (CRK) to optimize terminal capacity in Manila.

Lao confirmed that Cebu Pacific is collaborating closely with airport authorities regarding the timing for this transfer, which he anticipates may happen in the third quarter, although no specific date has been finalized.

How do you see Cebu Pacific’s plans impacting travel in the region?