CEB enters damp lease agreement with Bulgaria Air

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Low-cost carrier Cebu Pacific (CEB) has entered into a damp lease agreement with Bulgaria Air to strengthen its fleet and meet the anticipated rise in passenger demand in 2024.

In a statement, CEB said it signed the agreement with Bulgaria Air for two Airbus 320 CEO aircraft that will service two domestic routes, Cebu and Davao, from January to May 2024.

“We continue to explore various opportunities to supplement the fleet and ensure operational resilience. This includes signing a damp lease agreement with Bulgaria Air for five months in 2024,” said Xander Lao, CEB president and chief commercial officer.

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“We expect to increase our fleet to 92 come the end of 2024. With this, we expect our year-on-year seat growth to be within 5 percent to 8 percent in 2024,” added Lao.

Bulgaria Air, the national carrier of the Republic of Bulgaria, has many years of experience in damp lease of aircraft having partnered with airlines all over the world.

Also known as ACMI, damp leasing is an agreement between two airlines where the lessor provides an aircraft, crew, maintenance and insurance (ACMI) to the lessee.

The two leased A320ceo will each have a 180-seat capacity and will fly passengers from Manila to Cebu and Davao.

In the first nine months of the year, CEB reported a P5.03 billion income, a turnaround from last year’s P12.05 billion net loss.

Its revenues grew by 78 percent to P66.9 billion from P35.5 billion during the same period last year, driven by growth in passenger and ancillary revenues.

The revenue increase was due to the significant growth in passenger volume on the back of higher demand for travel, especially for international destinations which rose by 236 percent compared to the same period last year.

As of the end of September, CEB flew 15.5 million passengers, a significant improvement from the same period last year of 10.4 million passengers.

By year-end, the airline is expected to fly to 60 destinations, through over 100 routes and at least 2,700 weekly flights.

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