AirAsia gears for expansion in Philippines, sees profit next year

MANILA, Philippines - Low-cost carrier AirAsia Philippines expects to be in the black next year as it gears up for expansion of its route network and fleet.

“Making profit is not easy but I think we’ve got all the ingredients in place. 2016 is the year that we make things happen. The dream will finally become a reality,” AirAsia Philippines chief executive officer Joy Caneba said on the sidelines of the Asean Social Enterprise 2015 held over the weekend in Kuala Lumpur.

AirAsia Philippines is set to focus on the Chinese market via secondary gateways in the country such as Kalibo and Puerto Princesa. It is also set to acquire five more aircraft next year to bring its total fleet to 17.

“Hopefully, we’ll get the support of the government to be able to start new routes to China, Canto, Taipei and Saigon,” Caneba said.

Since its launch in March 2012, the airline has been in an almost constant state of restructuring. Its operation consists of only 12 active aircraft, which are used to serve seven domestic and seven international destinations.

In the first half, AirAsia Philippines registered P4.25 billion in revenues.  Operating losses declined 62 percent to P1.08 billion.

“It’s always been a critical year for us. Every start of a calendar year, you always want to do your best and for the Philippines, there’s always been a high pressure to turn into profit,” Caneba said.

Caneba, nevertheless, remains upbeat on on the airline’s operations especially with its fourth rebranding, noting the Philippines’ growing tourism industry.

AirAsia Philippines’ goal is to hit three to four million passengers by the end of the year. Data showed passenger traffic reached 1.8 million as of the end of the first half.