Under a preliminary agreement signed in the U.K., the flag carrier has committed to purchase at least 15 Dreamliners, with options for five more, the flag carrier said in a statement.
This Philippine Airlines’ first order for Boeing aircraft in almost two decades. Deliveries are scheduled between 2031 and 2034.
The airline did not disclose the financial terms of the deal, which could reach as much as $7.1 billion based on list prices. A single Dreamliner can cost up to US$355 million, though airlines typically pay between $150 million and $200 million after discounts, according to aviation data platform Simple Flying.
An artist’s impression of PAL’s 787 Dreamliner. Photo courtesy of Philippine Airlines |
The agreement follows Philippine Airlines’ $300 million fundraising from its first bond sale after emerging from Chapter 11 bankruptcy proceedings in the U.S. in December 2021. The proceeds will support the 85-year-old airline’s fleet renewal and expansion.
“This investment manifests our confidence in the future of Philippine Airlines and the continued growth of air travel,” said Lucio Tan III, president of PAL Holdings, the airline’s parent company.
“The Boeing 787-10 will strengthen our medium and longhaul fleet, allowing us to provide an even better travel experience for our customers while improving operational efficiency.”
The 787 Dreamliner acquisition forms part of a broader strategy to build a more efficient, sustainable and competitive airline. The aircraft will be equipped with GE Aerospace’s GEnx-1B engines.
With a fleet of more than 80 aircraft, Philippine Airlines serves destinations across the Philippines and 40 international routes in Asia, North America, Australia and the Middle East.
The airline has been expanding and upgrading its fleet since 2024, following a record profit in 2023 driven by a post-pandemic travel rebound. In December, it also ordered five additional Airbus A320 aircraft.
Beyond aviation, Tan’s business interests span banking, beer, spirits, tobacco and real estate through his publicly listed LT Group. He has a net worth of $2.9 billion, according to Forbes real-time data.
The purchase provides another lift for Boeing, which has also recently secured orders for 100 aircraft from leasing company SMBC and 28 jets from Riyadh Air, according to Bloomberg.
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