“Overall, the outlook for air travel demand remains positive, with a full recovery to pre-pandemic levels expected in 2024. Nevertheless, amid intensifying competition, airlines continue to be vigilant over costs, given fluctuations in oil prices as well as exchange rate volatility”
As full recovery to pre-pandemic levels is expected in the airline industry this year, local carriers are ramping up their route expansion and fleet acquisition to address the continued rise in travel demand.
Philippines Airlines, Cebu Pacific Inc. and Air Asia Philippines are anticipated to relaunch routes, increase flight frequency and expand to new domestic and international destinations this year.
Despite potential economic headwinds in the global market, PAL said it remains focused on growing its route network and fleet progressively to meet market demand and support the tourism industry.
PAL and its low-cost subsidiary PAL Express are committed to continually improving passenger service and operational efficiency through digital transformation and greater connectivity in our existing hubs in Manila, Cebu, and Davao.
“We are beefing up recruitment of pilots, cabin crew, and customer care staff to support the arrival of additional aircraft, including the long-range Airbus A350-1000s joining our fleet next year,” said Cielo Villaluna, PAL spokesperson.
PAL’s fleet expansion and service enhancements include Airbus A350-1000 long-range aircraft valued at a list price of over $3.2 billion for the nine aircraft ordered.
PAL is also poised to expand its Cebu hub network. It is enhancing its customer relations management system offering by more personalized self-service options for PAL customers while increasing its customer care personnel.
For this year, Cebu Pacific and its subsidiary Cebgo have earmarked P50 billion in capital expenditure, which is up by 19 percent as compared to last year, the bulk of which will be used to finance the acquisition of 16 aircraft, according to Alexander Lao, Cebu Pacific president and chief commercial officer.
Cebu Pacific’s fleet expansion is in line with its target to increase seat capacity by 5 to 8 percent this year from last year and to achieve the 24- million passengers target, surpassing the pre-pandemic level of 22 million passengers.
CEB flies to 35 domestic and 25 international destinations across Asia, Australia, and the Middle East.
Backed by the strong support of AirAsia X (AAX), which recently entered into a non-binding letter of acceptance with Capital A for the proposed acquisition of its aviation businesses, including AirAsia Berhad and AirAsia Aviation Group Limited, AirAsia Philippines anticipates deepening its connectivity not only across the country but across Asean and beyond with the possibility of long-haul flights in the near future.
“While these proposals are still being finalized, the integration of AirAsia Philippines, together with our affiliate AOCs (air operator certificates), into the AirAsia X network is expected to yield significant benefits, including a reinforced market presence, enhanced operational efficiency, and anticipated cost reductions,” said Steve Dailisan, AirAsia Philippines communications and public affairs head.
Airlines in Asia Pacific have shown solid expansion in international passenger markets, with healthy travel demand buoyed by continued recovery in tourism activity across the region, according to the Association of Asia Pacific Airlines (AAPA).
A combined total of 25.1 million international passengers flew on Asia Pacific airlines in November, representing a strong 76.9 percent increase compared to the same month in 2022.
This amounted to 81 percent of the levels seen in the same period in 2019. Traffic in revenue passenger kilometers grew by 67 percent year-on-year, outpacing a 61 percent expansion in available seat capacity to result in a 2.7 percentage point climb in the average international passenger load factor to 80 percent for the month.
Looking ahead, Subhas Menon, AAPA director general, said in a statement released early this month, “Despite a slowdown in global economic activity and increase in geopolitical tensions, Asia Pacific carriers saw healthy growth in international passenger demand throughout the year, in tandem with the restoration of flight frequencies and connectivity.
Air cargo markets have picked up, but uncertainties remain, with new export orders still in decline.”
“Overall, the outlook for air travel demand remains positive, with a full recovery to pre-pandemic levels expected in 2024. Nevertheless, amid intensifying competition, airlines continue to be vigilant over costs, given fluctuations in oil prices as well as exchange rate volatility,” Menon added.
