Cebu Pacific, the Philippines’ leading low-cost carrier, has earned international distinction after being awarded the Sustainability Aviation Lease Deal of the Year at the 2025 Airline Economics Sustainability Deals Awards, held in London.
The recognition was given for Cebu Pacific’s pioneering sustainability-linked Japanese Operating Lease with Call Option (JOLCO), which financed the acquisition of a brand-new Airbus A321neodelivered in December 2024. This advanced financing structure ties financial benefits to sustainability performance—marking a significant shift in how airlines can align environmental goals with business strategy.
The Airline Economics Sustainability Awards celebrate institutions and individuals in the aviation finance and leasing sectors who are actively contributing to reducing the industry’s carbon footprint.
Cebu Pacific CEO Mike Szucs accepted the award during the ceremony at the historic Natural History Museum in London, calling it a milestone not just for the airline but for sustainable aviation in the region.
CEB is currently the only low-cost carrier in Southeast Asia to secure this type of sustainability-linked JOLCO, a structure typically available only to larger, full-service international airlines. This achievement highlights Cebu Pacific’s growing influence in sustainable aviation financing.
“Embedding sustainability into our financial strategy reflects how seriously we take our environmental responsibilities,” said Mark Cezar, Chief Financial Officer of Cebu Pacific.
“It enables us to modernize our fleet with more fuel-efficient aircraft while also holding ourselves accountable through clear, measurable targets. It’s a win for our business, our customers, and the planet.”
As part of the agreement, Cebu Pacific committed to specific emissions-reduction benchmarks. Achieving these goals will trigger financial incentives, further reinforcing the airline’s dedication to decarbonizing its operations.
The Airbus A321neo acquired under the deal is part of Cebu Pacific’s broader plan to transition to an all-NEO fleet, a move that supports its long-term environmental roadmap. The NEO (New Engine Option) aircraft offer approximately 20% improved fuel efficiency over older models, translating to significantly lower carbon emissions per flight.
Cebu Pacific’s award-winning deal sets a precedent for how low-cost carriers can lead in climate-conscious financing—making sustainable growth not only possible, but practical.
