Philippine Airlines (PAL), controlled by billionaire Lucio Tan, has received the first of five newly ordered Airbus A320s worth $490 million, even as Airbus grapples with a supply-chain defect that has forced it to cut its 2025 global delivery target by 4%.

The five additional A320s—each configured for 180 passengers and earmarked for domestic routes—will raise PAL’s fleet to 80 aircraft, including 16 A320-family jets. The first arrived this week, another is due later this month, and the remaining three are scheduled for 2026. PAL Express vice president Rabbi Vincent Ang said: “By expanding our A320 fleet, we are providing travellers with more reliable, convenient, and comfortable options.”

The order forms part of PAL’s aggressive post-pandemic fleet modernization, which also includes planned acquisitions of Airbus A350-1000 wide-bodies and A321neo jets. PAL Holdings reported a 17% rise in nine-month net profit to $159 million this year, following a record 2023, as passenger demand continues to surge.

Meanwhile, Airbus faces its latest industrial setback. On December 3, the company lowered its 2025 commercial aircraft handover target from about 820 to around 790 jets after discovering incorrectly machined fuselage panels supplied by Spain’s Sofitec Aero.

The flaw—affecting panel thickness near passenger doors—requires inspection of 628 A320-family aircraft (168 already in service) and repairs lasting 3–5 weeks per jet. While not an immediate safety issue, airlines are refusing deliveries until fixes are completed to eliminate any risk of decompression.

Despite the ~30-jet shortfall, Airbus reaffirmed its full-year financial guidance of €7.0 billion adjusted operating profit and €4.5 billion free cash flow. Shares rose more than 3% as investors bet on the resilience of the high-margin A320 program and contributions from its defense and helicopter divisions.

Lucio Tan, 91, whose $3.3 billion fortune spans tobacco, banking, beer, spirits, and property, continues to back PAL’s expansion through his LT Group, underscoring confidence in the airline’s growth trajectory despite global aerospace challenges.