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Philippine Airlines finalized agreements with Airbus and Rolls-Royce for nine additional A350-1000 aircraft, increasing its total commitment for the long-range aircraft to 18
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The agreements also include purchase rights for five more A350-1000s and the supply of Rolls-Royce Trent XWB-97 engines
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The Rolls-Royce deal includes the TotalCare engine maintenance and support program
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PAL is the first and currently only airline in Southeast Asia operating the A350-1000
Philippine Airlines (PAL) finalized agreements with Airbus and Rolls-Royce for the nine additional A350-1000 aircraft, increasing its total commitment for the long-range aircraft to 18 as it expands its international network.
The agreements, signed by the three companies in Manila on November 5, also include purchase rights for five more A350-1000s and the supply of Rolls-Royce Trent XWB-97 engines.
The definitive contracts formalize the memoranda of understanding (MoUs) announced at the Farnborough International Airshow in July.
PAL is the first and currently still the only airline in Southeast Asia to operate the A350-1000. The carrier so far has four of the aircraft from the initial nine ordered in 2023, serving the flag carrier’s nonstop routes to the East and West Coasts of the United States and Canada.
READ: PAL takes delivery of 4th Airbus A350-1000
The additional aircraft will enable PAL to deploy the aircraft on more long-haul routes as it expands its international operations.
“We have seen what this aircraft can do. It has allowed us to fly nonstop to North America with better fuel efficiency and a better experience for our passengers,” said Lucio Tan III, PAL chairman and PAL Holdings Inc. president and chief operating officer.
“For eight and a half decades, we have connected people, businesses and communities across the Philippines and around the world. As we honor that legacy, we must also prepare for the decades ahead, and today’s agreements are an important part of that preparation,” Tan added.
The A350-1000 features a quieter cabin, larger windows, lower cabin altitude and higher humidity, which are designed to improve passenger comfort on long-haul flights, PAL said.
The fleet expansion comes as PAL faces higher fuel expenses, with jet fuel accounting for nearly 40% of its operating costs, compared with approximately 31% a year earlier.
Average jet fuel prices increased 52.7% to US$152.72 per barrel, further highlighting the importance of operating more fuel-efficient aircraft.
To manage rising fuel expenses, PAL adjusted fares and fuel surcharges, reduced flights on selected routes and maintained controls over other operating costs. The airline expects fuel prices to remain the main factor affecting its financial results for the remainder of the year. PAL also reported free cash flow of $247 million for the nine-month period. Cash and short-term investments reached $879 million as of September 30, more than double the $431 million recorded at the end of 2025.
READ: PAL swings to $159M loss as fuel costs soar 50%
Benoît de Saint-Exupéry, executive vice president of sales for Airbus Commercial Aircraft, said the agreement strengthens the company’s partnership with PAL and supports the airline’s long-term network expansion.
“We are proud that PAL is strongly expanding its A350-1000 flagship fleet, flying the flag of the Philippines across the world,” de Saint-Exupéry said.
“This agreement marks an important milestone in deepening our partnership with Philippine Airlines. Being the long-range leader, the A350-1000 is the perfect platform for the airline to build its future long-haul network and meet continued growth, especially in competitive premium transpacific markets,” he added.
Rolls-Royce engines
Each A350-1000 will be powered by Rolls-Royce Trent XWB-97 engines, the exclusive engine type for the aircraft. The engines are designed to deliver fuel efficiency and operational reliability.
The agreement also includes Rolls-Royce’s TotalCare service program, which provides comprehensive engine maintenance and technical support to help maximize aircraft availability and maintain flight schedules.
Ewen McDonald, Rolls-Royce chief customer officer, said the agreement reflects PAL’s continued confidence in the engine manufacturer’s products and services.
“We are delighted to take this next step with Philippine Airlines and finalize the agreement we announced at Farnborough International Air Show earlier this year. Our partnership goes back many years, and this order highlights Philippine Airline’s continued confidence in the Trent XWB-97’s proven reliability and efficiency. Along with TotalCare support, Philippine Airlines can be confident in its growing A350-1000 fleet as it expands its connections between Southeast Asia and the rest of the world,” McDonald said.
PAL currently operates 86 aircraft, 65 of which are manufactured by Airbus.
