Low-cost carrier Cebu Pacific is closely monitoring the potential fallout from the reimposition of the United States’ new tariff policy on its record ₱1.4 trillion deal to purchase aircraft from European manufacturing giant Airbus SE.

In October last year, the Gokongwei-led airline finalized a landmark purchase agreement with Airbus and engine manufacturer Pratt & Whitney for what is considered the largest acquisition in Philippine aviation history.

Cebu Pacific specifically secured the order to acquire up to 152 A321neo (new engine option) aircraft.

The airline is set to receive the first batch of jets from Airbus by 2029.

Cebu Pacific President and Chief Commercial Officer Xander Lao said Airbus has yet to issue a notice to the carrier regarding potential issues with the order.

“It's a developing situation...So let's see what happens. But so far, we've not seen any impact to deliveries or operations,” said Lao.

Last month, U.S. President Donald Trump announced a new tariff policy targeting the majority of the country's trading partners.

Specifically, he imposed a baseline ten percent tariff on all foreign-based goods coming into America. This is alongside the higher reciprocal tariffs imposed by the US on countries with which it has a trade deficit.

In a Reuters report, U.S. aviation leaders are raising concerns over potential risks associated with the delay of shipments, even though aircraft deliveries are typically ordered years in advance.

While Airbus is based in Europe, the fallout from Trump’s tariffs is expected to affect the global market, particularly as reciprocal tariffs are set to be reimposed in July.

“Look, you can't worry about something that you can't predict because it's really different, every day the mood changes. So let's see what the impact of those tariffs will be,” said Lao.

Despite the looming threat of the tariffs, Lao said the airline is upbeat that its aircraft order will be unaffected by policy and trade shifts.

“We do have contractual protections in our contracts for those orders. So we're not worried at this time,” he pointed out.

Lao likewise said traffic volume will remain robust even as passengers may cast uncertainty in their spending while awaiting the impact of the tariffs.

In the first quarter of the year, Cebu Pacific saw its traffic volume rise 26 percent to seven million from 5.5 million during the same period last year.

The airline delivered 17 aircraft in 2024, concluding the year with a fleet of 98 aircraft.

It is expecting seven more deliveries this year, breaching the 100-aircraft milestone.

Cebu Pacific currently operates in 37 domestic and 26 international destinations spanning Asia, Australia, and the Middle East.