Cebu Pacific Completes PHP 1.75 Billion Acquisition of AirSWIFT to Boost Local Travel

Cebu Pacific (stock: CEB), the Philippines' leading budget airline, has taken a major step in expanding its domestic reach by acquiring a 100% stake in boutique carrier AirSWIFT for PHP 1.75 billion. This deal, approved by the boards of both Cebu Pacific and ALI Capital Corp. of Ayala Corporation (stock: AC), the previous owner, cements Cebu Pacific's position as a dominant player in the country's air travel market.

The acquisition aligns with Cebu Pacific’s broader goal of increasing accessibility to top tourist destinations across the Philippines. AirSWIFT, known for operating routes to El Nido, Palawan—a highly sought-after beach destination—adds a strategic layer to Cebu Pacific’s network. The boutique airline connects travelers from Manila and Clark to El Nido and offers further routes to destinations like Cebu, Boracay, Coron, and Bohol.

By absorbing AirSWIFT, Cebu Pacific will now offer expanded flight options to some of the world’s most beautiful beaches, contributing to the growth of the local tourism sector. CEB President Xander Lao emphasized that this move is part of the company’s strategy to provide more affordable travel options, ultimately driving economic growth and boosting tourism.

AirSWIFT brings with it five turboprop aircraft, including ATR 72s and ATR 42s, which will be integrated into Cebu Pacific's fleet, raising the total number of turboprops to 20. These aircraft are especially suited for flying to smaller island destinations that require shorter runways, making them perfect for remote areas such as Palawan.

Prior to the acquisition, AirSWIFT recorded impressive performance figures, carrying over 355,000 passengers in 2023—surpassing its pre-pandemic peak of 321,523 in 2019. This growth potential is one of the primary drivers behind Cebu Pacific's interest in acquiring the airline. In 2019 alone, AirSWIFT generated PHP 1.68 billion in revenue for ALI Capital, a figure that Cebu Pacific hopes to replicate or exceed as domestic travel continues to rebound.

Passengers flying with AirSWIFT won’t experience any immediate changes in their travel plans. Cebu Pacific has confirmed that flight schedules and services will remain consistent for the time being. In the long term, however, the airline will gradually integrate AirSWIFT’s operations into its network, ensuring a smooth transition.

It’s worth noting that ALI Capital will retain ownership of Lio Airport in El Nido, a key infrastructure piece in the region’s tourism landscape. Although Cebu Pacific now owns AirSWIFT, it will operate as a subsidiary for the foreseeable future.

This acquisition follows a series of major moves by Cebu Pacific, including a historic $24 billion order for 152 aircraft from Airbus, set to be delivered starting in 2029. The airline aims to strengthen its fleet to meet the growing demand for domestic and international travel, with the AirSWIFT deal marking another milestone in its expansion strategy.

For Ayala Land’s ALI Capital, the sale aligns with its strategy to refocus on core businesses, allowing resources to be allocated more efficiently. The deal also signals another successful collaboration between the Ayala and Gokongwei families, following the earlier merger between Bank of the Philippine Islands (BPI) and Robinsons Bank.

Cebu Pacific’s acquisition of AirSWIFT is a win-win for both companies, offering Cebu Pacific an expanded domestic network while helping ALI Capital focus on its core ventures. As Cebu Pacific strengthens its position as the leading domestic carrier, travelers can expect more flight options, competitive prices, and increased accessibility to the Philippines' top tourist destinations.

This move underscores Cebu Pacific’s commitment to enhancing local travel and boosting tourism, setting the stage for more growth in the years to come.