Cebu Pacific CEO: Philippines Ripe For LCC Growth Despite Engine Woes

HONG KONG—Cebu Pacific CEO Mike Szucs says the Philippines offers “huge potential for growth” in air travel, driven by favorable demographics, economic momentum and infrastructure development.

Speaking at Routes World 2025 during a pre-recorded panel discussion on the country’s aviation sector, Szucs emphasized the strategic fit between Cebu Pacific’s low-cost model and the Philippine market.

“This is a wonderful place from a tourism point of view,” Szucs said. “It’s got some of the most beautiful beaches in the world.” He added that while domestic tourism is strong, international tourism still has “plenty of room for growth.”

Szucs cited the country’s young population and rising GDP per capita as key factors driving travel demand. “As wealth levels increase, then the propensity to travel increases,” he said. “There’s huge potential for growth here in the Philippines.”

Cebu Pacific is expanding its domestic footprint, operating five bases in Cebu, Clark, Davao, Iloilo and Manila. “We’re opening new routes there all the time,” Szucs said. “Being able to stimulate [demand] is critically important.”

The airline’s order of up to 152 Airbus aircraft is designed to support growth across both Manila and regional markets. “We’ve structured the order that we can phase it in,” Szucs explained. “If, for example, Bulacan [New Manila International Airport] doesn’t happen ... we can reduce the order down toward the minimum size of 70.”

Szucs said the new Bulacan airport, currently under development, could unlock significant expansion. “This is going to give an opportunity for a completely different level of growth,” he said. “It’s essentially like Narita coming online, and you’ve got Haneda.”

Despite the optimism, Szucs acknowledged operational challenges, particularly with engine availability. “We’re impacted by the powdered metal issue,” he said, referring to problems with Pratt & Whitney geared turbofan (GTF) engines. “I’ve never known a more difficult time to keep the fleet flying.”

The carrier has 10 of its Airbus narrowbodies parked because of the Pratt & Whitney GTF engine issues that have affected many carriers worldwide.

Szucs also expressed concern about rising airport charges at Manila’s Ninoy Aquino International Airport following its privatization. “We’d like to have seen those charges lower, but they are where we are,” Szucs said. “Let’s see these improvements come through.”

Szucs reaffirmed Cebu Pacific’s commitment to short-haul operations. “We’re not going to change the knitting,” he said. “If I draw a four-hour flight time around Manila, there’s 2 billion people in that radius. That’s a pretty large addressable market.”