Philippine Airlines has finalised a new 12-year loan facility, arranged by Citi and guaranteed by UK Export Finance (UKEF), to fund a Rolls-Royce Trent XWB-97 engine for one of its incoming Airbus A350-1000 aircraft. The agreement marks the flag carrier’s first return to export credit agency financing in more than ten years, signalling renewed confidence from international lenders as the airline progresses with its fleet modernisation plans.
Citi acted as the sole lead arranger and facility agent for the transaction.
The Trent XWB-97 engine will form a central part of the airline’s long-haul expansion strategy. It will power the A350-1000, one of nine aircraft ordered as part of Philippine Airlines’ efforts to grow its intercontinental network. According to the airline, the Trent XWB-97 offers a quieter operation and is around fifteen per cent more fuel efficient compared with earlier Trent engine versions.
Alongside its widebody developments, Philippine Airlines is preparing for growth on its narrowbody routes. The carrier expects the delivery of 13 Airbus A321neo aircraft beginning in 2026. It is also mid-way through a refurbishment programme for 18 A321ceo jets, upgrading cabins across the fleet. The first refurbishment was completed in September 2025.
Speaking about the financing arrangement, Alvin Limqueco, Philippine Airlines senior vice president – Chief Supply Chain Officer, said, “This financing agreement with Citi and UKEF marks a significant step in our fleet modernisation and demonstrates the strength of our partnership with these institutions.”
“By working closely with Citi and UKEF, we are able to acquire the advanced Rolls-Royce Trent XWB-97 engine, reinforcing Philippine Airlines’ commitment to operational excellence and world-class customer service.”
Manish Bajaj, Citi Philippines’ corporate banking head, commented, “Citi is proud to support Philippine Airlines through this landmark UKEF-backed financing transaction, which demonstrates the strength of PAL’s long-term growth strategy and access to global funding markets.” He added, “The transaction highlights Citi’s commitment to delivering innovative and strategic financing solutions for our clients, while reinforcing our partnership with the Philippines’ flag carrier through its next phase of growth and expansion.”
Offering further remarks, Khoa Huynh, Citi Aviation corporate banking director, said, “This landmark transaction is testament to the close partnership between all three parties, powering Philippine Airlines into its next chapter. We are excited to facilitate Philippine Airlines’ growth and next-generation passenger experience, whilst embedding operational resilience with this engine supporting a new fleet type.”
Tim Reid, CEO of UK Export Finance, noted, “We are proud to have played a part in the first ECA-backed financing raised by Philippine Airlines in over 12 years. These new engines will drastically help to reduce emissions. This deal encapsulates UKEF’s vision to support UK exporters and jobs, drive local growth and create global impact.”
The agreement is one of the latest steps in Philippine Airlines’ multi-year fleet upgrade, aimed at enhancing operational efficiency, improving fuel performance and strengthening its position in long-haul and regional markets.
