Philippine budget airline Cebu Pacific has announced it will lease two Airbus A320 jets to Saudi budget carrier Flyadeal to generate revenue from its excess capacity during the Philippines low season. In this “wet lease” agreement, Cebu Pacific will rent the narrow-body aircraft, along with its pilots, crew, and maintenance, to Flyadeal during the lean months of July and August, which are peak periods for the Saudi airline. Flyadeal CEO Steven Greenway commented, “We have this natural symbiosis where my peak is not his and vice versa,” during a press conference.

Cebu Pacific CEO Michael Szucs indicated that this is the first instance of the airline leasing out its aircraft and suggested that additional leases could follow as new fleet orders come in. Last year, Cebu Pacific committed to acquiring a minimum of 70 Airbus A321neo aircraft to meet long-term fleet requirements.

This lease agreement comes as Flyadeal prepares to expand into Southeast Asia following an order for 10 A330neo wide-body jets aimed at entering long-haul markets. Greenway noted that three of the ordered aircraft will be operational by July 2027, with two more expected at the end of the year, stating, “Southeast Asia is our key destination for these aircraft.” He added that the Philippines is particularly intriguing due to the partnership with Cebu Pacific, which could facilitate the flow of Philippine traffic into the Gulf region, especially for overseas workers and travelers participating in the annual Muslim Haj pilgrimage.