Budget airlines to boost seat capacity in Q4
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.
Philippine budget airlines, including Cebu Pacific and AirAsia Philippines, are set to boost seat capacity by up to 10 percent by the end of the year, as they strive to capitalize on the remaining demand amidst rising fares. Cebu Pacific's President and Chief Commercial Officer, Alexander Lao, revealed that the airline is on track for another double-digit growth in seat capacity, with an anticipated increase to at least 35.19 million seats by the end of 2025.
Currently, Cebu Pacific's seat capacity has already risen by nine percent to 20.49 million, surpassing a four-percent rise in passenger volume to 16.72 million. Despite this growth, the airline remains optimistic that demand will match this capacity expansion during the Christmas season, with forward bookings for the remainder of the year trending better than last year.
In addition to enhancing capacity, Cebu Pacific will expand its route network with the addition of flights to Shanghai, Nagoya, and Xiamen in November, as well as resuming overseas flights from Davao and Iloilo to improve accessibility for travelers in Visayas and Mindanao. AirAsia Philippines, on the other hand, reported a 44-percent surge in seat sales from May to July and anticipates sustaining this growth momentum into the fourth quarter.
The airline attributes this positive trend to improving consumer confidence and growing appetite for travel ahead of the peak holiday period, marking the two major holidays - Undas in November and Christmas in December. However, recovery drivers such as an easing in geopolitical concerns and a reduction in fuel surcharges, which have become unpredictable due to the absence of a long-term peace deal in Iran, could impact the airline's performance.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
