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Mactan-Cebu International Airport grows rapidly as hub prospects improve with Manila congestion

Analysis

Cebu in the Philippines has emerged as one of the fastest-growing airports in Southeast Asia, with passenger growth of 13% through the first 10 months of 2015. Mactan-Cebu International Airport has been boosted by the relaunch of several domestic routes by the Philippine Airlines (PAL) Group, as well as international expansion from PAL, Cebu Pacific and foreign carriers.

The second largest airport in the Philippines is poised for more rapid growth in 2016 as PAL continues to pursue expansion at its second hub, with more new domestic routes and the launch of services to Los Angeles, Cebu's first long haul route. The Cebu Pacific Group also plans to expand its Cebu base in 2016, with at least two more turboprops.

Mactan-Cebu is well positioned for long-term growth as the airport's new private owners have begun construction of a new terminal, which will increase annual capacity to 12.5 million annual passengers. The new terminal will enable Cebu to build as a hub for transit traffic, and to benefit further from infrastructure constraints at Manila, which are prompting Philippine carriers to base additional aircraft at secondary cities.

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