As a country divided by islands and island groups, the aviation industry in the Philippines provides an opportunity for Filipinos and foreign tourists to travel and explore destinations inside and outside the country. After the disruptions caused by the COVID-19 pandemic since 2020,
doubled in 2023 compared to the previous year, although it remained lower than the pre-pandemic volume. Recovery was dominated primarily by domestic travel, which has accounted for the majority of air passenger traffic since 2020. The same is the case for
, which have shown significant improvements in the past three years.
Leading commercial airlines in the Philippines
The aviation industry is a significant contributor to the Philippine economy, with
air transportation accounting for over 95 percent of tourist arrivals to the country in the years prior to the pandemic. Following a slump in air travel demand, airlines in the Philippines have bounced back after experiencing losses. The country’s flagship airline, the Philippine Airlines, generated
revenue figures surpassing pre-pandemic values as it dominated
international passenger traffic. Meanwhile, low-cost airline Cebu Pacific served the highest share of
domestic passengers in the Philippines in 2023, which contributed to its
revenue increase. Malaysian low-cost airline AirAsia also reported revenue growth in 2022, although it remains lower than its pre-pandemic performance.
Meanwhile for
domestic airfreight forwarders, AP Cargo Logistics Network Corporation held the majority of the market share at about 30 percent, followed by LBC Express.
Among international players, Nippon Express Philippines Corporation had the highest volume of cargos carried in 2023. Although
domestic trade is carried mostly by water transport, the majority of
commodities traded through air were food and live animals in 2023.
The state of Philippine airports
There are currently 90 airports nationwide that can handle both domestic and international flights. The biggest is the Ninoy Aquino International Airport (NAIA), also known as the Manila International Airport, which consists of four passenger terminals and another one in the pipeline. The airport serves as a hub for the major commercial airlines in the country. In 2022, about 31 million
passengers were served in the NAIA airport terminals, most of them were traveling domestically. Aside from NAIA, the other leading airports in the country are the
Mactan-Cebu International Airport, which serves the Central Visayas region, and the
Clark International Airport, which serves Central Luzon and the Greater Manila area. Additional investments in the air transport sector in the Philippines are expected to continue to drive the sector’s growth in the coming years.
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