LOCAL AIRLINES expect the recovery momentum to continue next year, as the industry is better positioned to weather potential external headwinds.
“We are on track to restore our flights to 90% of pre-pandemic levels,” flag carrier Philippine Airlines said in a statement toPAL, which completed its voluntary Chapter 11 proceedings last year, saw its financial performance significantly improve. It posted a P6.8-billion attributable profit in the first nine months of 2022, a turnaround from the P21.8-billion net loss a year ago.
The flag carrier noted that the Civil Aeronautics Board’s move to lower the applicable fuel surcharge for domestic and international flights to Level 7 in January 2023, from Level 8 implemented in November and December, will “increase travel appetite and boost air travel.” The IATA earlier this month said it expects a net profit of $4.7 billion for the global airline industry next year, after losing billions of dollars in 2020 and 2021 amid the pandemic.
“AirAsia Philippines is on the path to full recovery in 2023. Our key goals in the coming year are the following: Growth of fleet and flight frequency to pre-pandemic levels, reactivation of hibernated international routes and launch of new ones, and the expansion of our domestic route network,” Mr. Isla said in a statement toHe also cited “strengthened collaboration with the private sector and investment in improved infrastructure” as contributing to the industry’s resurgence.
“Philippine Airlines has already been profitable in recent quarters, benefiting from a supply-demand imbalance in the long-haul market which has resulted in extremely high yields ,” he said in an e-mail interview. AirAsia Philippines has been slow to restore capacity, and its financial situation is “rather weak compared to its two much larger competitors,” he noted.
“Our region is about six months ‘behind’ US/Europe, so the impact seen by European airlines this year will likely be felt by airlines in Asia next year,” he said in an e-mail interview.
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