PAL orders up to 20 Boeing 787 Dreamliners in $3.4-billion push to expand global network

Manila: Philippine Airlines (PAL) has placed one of the largest aircraft orders in its recent history, committing to buy 15 Boeing 787-10 Dreamliners with rights to purchase five more.

The multibillion-dollar investment signals the flag carrier's confidence in the long-term growth of international travel despite years of industry turbulence.

If all purchase rights are exercised, the deal would be worth an estimated $3.4 billion after customary discounts, according to aviation consultancy IBA Group.

The agreement, announced Monday at the Farnborough International Airshow, marks a significant milestone for the flag-carrier as it embarks on a fleet renewal strategy designed to replace aging widebody aircraft while expanding capacity across Asia, Australia and other long-haul markets.

"Our first Dreamliner will arrive in 2031," PAL President Richard Nuttall said during the signing ceremony.

"These aircraft are long-term replacements for our medium-haul fleet, and they also give us opportunities for expansion. We are really excited to be taking these aircraft."

at a time when the US aircraft manufacturer is seeking to strengthen its position in the fast-growing Asia-Pacific aviation market.

Rather than committing exclusively to one manufacturer, PAL is deepening relationships with both Boeing and Airbus, reflecting a strategy increasingly favored by global carriers seeking operational flexibility and supply-chain resilience.

PAL currently operates a mixed long-haul fleet of 10 Boeing 777-300ERs, 11 Airbus A330-300s, and four Airbus A350s, including two A350-900s and two A350-1000s.

The airline also has seven additional Airbus A350-1000s on order, reinforcing its position as one of Southeast Asia's few airlines operating both Airbus and Boeing widebody fleets.

While A350 is seen as an efficient long-haul carrier for North America and Europe, the 787 Dreamliners may be used for high-capacity regional and medium-haul backbone — a "workhorse" for Asian routes.

These jets are positioned to complement each other.

The Boeing 787-10, the largest member of the Dreamliner family, will complement — rather than replace — Airbus aircraft, giving PAL greater flexibility in matching aircraft size with passenger demand across different international routes.

The Dreamliners are expected to begin arriving in 2031, reflecting the lengthy production queues facing aircraft manufacturers as airlines worldwide race to secure new fuel-efficient jets.

The aircraft will be powered by GE Aerospace GEnx-1 engines, according to a source familiar with the agreement.

PAL says the new aircraft will deliver lower fuel consumption, reduced emissions and improved passenger comfort, features that have become increasingly important as airlines seek to cut operating costs while meeting stricter environmental targets.

"These aircraft will strengthen our long-haul fleet, allowing us to provide an even better travel experience for our customers while improving overall efficiency," PAL Holdings Chief Operating Officer Lucio Tan III said.

"This investment manifests our confidence in the future of Philippine Airlines and the continued growth of air travel."

The order represents another chapter in PAL's recovery following the pandemic, which forced airlines around the world to slash capacity, retire aircraft and restructure operations.

Since emerging from financial restructuring, PAL has steadily rebuilt its international network, restored profitability and expanded service to North America, Australia, Japan and the Middle East — markets that remain central to the carrier's long-term strategy.

Industry analysts say the ASEAN region is expected to become one of the fastest-growing aviation markets over the next two decades, driven by rising incomes, tourism and a growing overseas workforce.

For the Philippines, where millions of overseas Filipino workers (OFWs) and diaspora families depend on long-haul air links, fleet modernization is viewed as both a commercial necessity and a strategic investment.

Lucio Tan noted that Boeing and PAL have worked together for nearly 80 years.

"That partnership has helped shape our airline and contribute to the growth of Philippine aviation," he said.

The announcement also provides Boeing with another high-profile order as it competes aggressively with Airbus for market share in Asia, where airlines are placing increasingly large orders to capitalize on the region's aviation boom.

By the time PAL's first Dreamliner enters service in 2031, the airline expects demand for international travel to be significantly higher than pre-pandemic levels — a bet that billions of dollars and the future shape of its fleet now rest upon