Cebu Pacific’s global course finds new fuel with Flyadeal tie-up

Cebu Pacific is stepping up its Saudi game. As it prepares to launch direct flights from Manila to Riyadh, the airline is also deepening its footprint in the Kingdom through a strategic tie-up with Saudi low-cost carrier Flyadeal. Under a wet-lease deal signed in Manila on 29 May, Cebu Pacific will deploy two Airbus A320s to Flyadeal for use during Saudi Arabia’s peak summer travel rush.

“Today’s agreement is momentous as it marks Flyadeal’s first ever strategic airline partnership,” said Flyadeal CEO Steven Greenway (pictured, right) in a release. “It was clear and obvious that Flyadeal could learn a lot from Cebu Pacific’s experience of low-cost long-haul operations, given we will be inducting the same A330-900neos into our fleet in just two years’ time.”

The partnership will also allow Cebu Pacific to consider wet-leasing Flyadeal aircraft during Southeast Asia’s year-end rush - highlighting the reciprocal nature of the deal.

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For Cebu Pacific CEO Mike Szucs (pictured, left), this is more than just a leasing arrangement. “This partnership with Flyadeal highlights Cebu Pacific’s growing capability to support international carriers through wet leasing and broader operational collaboration,” he said. “It diversifies our revenue streams and further expands Cebu Pacific’s presence beyond the Asia Pacific region.”

It’s a far cry from last year, when the airline was forced to abandon its planned Saudi launch and indefinitely delay the reopening of Beijing routes amid post-pandemic demand uncertainties and ongoing supply disruptions.

“China has been so soft. Until we see a rebound in terms of forward bookings, I think we have to take a deliberate approach on China,” said Cebu Pacific president and chief commercial officer Xander Lao at that time. One in five Cebu Pacific aircraft was expected to be grounded as jet engines undergo repairs.

Rather than aggressively launching new long-haul destinations, Cebu Pacific planned to reallocate its wide-body jets to high-demand short-haul routes such as Bangkok, Tokyo, and Hong Kong. Its thrice-weekly service to Da Nang, Vietnam saw promising traction, with the airline studying possible frequency increases.

With global aviation still swaying from geopolitical uncertainty - including potential US tariffs on aircraft manufacturing - Lao remains pragmatic.“Look, you can't worry about something you can't predict kasi paiba-iba talaga e (because things really keep changing),” he said, as quoted by ABS-CBN. “So, let's see what the impact of those tariffs will be. But we are fully confident that we have the necessary contractual protections.”

Indeed, despite the turbulence, Cebu Pacific reported a 26% increase in travel demand in Q1 and expects to carry that momentum into the second quarter. The airline is aiming for a 15-20% increase in total seat capacity this year, a forecast supported by international route additions and aircraft upgrades.

There’s also a macroeconomic tailwind: a stronger peso, which eases some of Cebu Pacific’s US dollar-denominated costs. But Lao is cautious not to overread that advantage. It offers some relief, but the currency’s fluctuations make it hard to predict long-term benefits, he said.

The Flyadeal partnership offers more than just capacity optimisation - it provides Cebu Pacific a strategic expansion into Saudi Arabia, a country that hosts the most overseas Filipino workers in the world.

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