Cebu Pacific inks deal to buy sustainable fuel

MANILA, Philippines — Low-cost carrier Cebu Pacific has signed a five-year deal with an oil refiner based in Finland for the possible purchase and supply of sustainable aviation fuel (SAF).

Cebu Pacific yesterday entered into a memorandum of understanding (MOU) with Neste, one of the largest producers of SAF in the world.

The MOU lays out an avenue for Cebu Pacific to explore the SAF offered by Neste as the airline looks to incorporate the use of the fuel in its commercial services by 2030.

SAF is becoming a popular and sustainable alternative for airlines in powering their jets. Created from sustainable feedstocks, SAF is said to reduce carbon emissions by up to 80 percent over its life cycle compared to the conventional jet fuel.

Cebu Pacific chief strategy officer Alex Reyes said the airline is speeding up efforts to introduce SAF in its operations. He also noted that the use of SAF will help Cebu Pacific achieve its goal of becoming net zero by 2050.

“Cebu Pacific has laid out initiatives to address our emissions footprint, with a primary focus on integrating SAF in its operations, (as) this will consequently minimize the environmental impact generated from our flights,” Reyes said.

Last year Cebu Pacific operated its first commercial flight blended with SAF from Singapore to Manila, making it the first budget carrier in Southeast Asia to achieve the feat.

Cebu Pacific is doubling down on its actions to decarbonize its operations, committing to run a fuel-efficient fleet by 2028 in spite of the vulnerabilities of its preferred aircraft.

Even as neo jets face scrutiny over their longevity, Cebu Pacific will push through with its plan to transition to a fleet all made up of fuel-efficient planes by 2028. The program should reduce its carbon footprint per passenger between 17 percent and 29 percent.

The neo, short for new engine option, is made to burn 20 percent less fuel than the current engine option jets, and Airbus is hoping its neo models will help in international efforts to decarbonize. However, airlines, including Cebu Pacific, are struggling to keep these neo jets operational, with their suppliers recalling them back to shop for multiple issues.

In September, Cebu Pacific announced that it could operate on an injured fleet yet again in 2024, as one of its largest sources is recalling jet engines due to a production flaw.

Pratt & Whitney believes it has to withdraw up to 700 engines from Airbus A320neos around the world for a lengthy overhaul until 2026, a recall that could affect 25 aircraft of Cebu Pacific.