Budget airlines to boost seat capacity in Q4

MANILA, Philippines — The country’s budget carriers are increasing seat capacity by up to 10 percent to end the year, as they look to salvage what remains of Philippine demand at a time when fares have been rising.

Cebu Pacific president and chief commercial officer Alexander Lao told The STAR the airline is headed for another year of possibly a double-digit growth in seat capacity.

The Gokongwei-led airline anticipates capacity growth of up to 10 percent this year that would hike total seats to at least 35.19 million, from 31.99 million in 2025.

As of July, Cebu Pacific’s seat capacity has gone up by nine percent to 20.49 million, surpassing the four-percent increase in passenger volume to 16.72 million. Still, the airline is optimistic that demand would catch up with capacity during the Christmas season.

“We’re encouraged by the momentum we’re seeing in forward bookings for the remainder of the year, which are trending better than last year. Demand for both domestic and international travel remains robust with strong year-on-year growth outlooks as we head into the peak travel season,” Lao said.

Cebu Pacific will be adding Cebu flights to Shanghai and Nagoya and Manila trips to Xiamen in November, expanding the airline’s wings internationally.

Further, the country’s largest carrier by both fleet and passenger size is resuming overseas flights from Davao and Iloilo to offer ease of access to travelers in Visayas and Mindanao.

“Overall, we remain cautiously optimistic about the outlook for the remainder of the year and are still focused on giving more Filipinos access to affordable and convenient air travel as they make their holiday plans,” Lao said.

AirAsia Philippines is also approaching the fourth quarter in a better position. The airline booked a 44-percent surge in seats sold from May to July, and expects to sustain growth momentum into the fourth quarter.

The Philippine unit of AirAsia, however, said recovery drivers would be an easing in geopolitical concerns and a reduction in fuel surcharge. Recently, these two factors have become unpredictable again due to the absence of a long-term peace deal in Iran.

Still, AirAsia Philippines trusts the domestic market, especially as Filipinos tend to book flights for two holidays in the fourth quarter – Undas in November, and Christmas in December.

“This positive trend reflects the improving consumer confidence and growing appetite for travel ahead of peak holiday period,” airline executives told The STAR.