Loading

Cebu Pacific and Philippine Airlines competition activity escalates at Mactan-Cebu Airport

Cebu Airport has emerged as a battleground for the two main airline groups in the Philippines. Cebu Pacific and Philippine Airlines (PAL) are both pursuing ambitious domestic expansion at Cebu, pressuring yields on point-to-point routes that bypass congested Manila.

Cebu Pacific is adding capacity on seven domestic routes from its hub at Mactan-Cebu International Airport. PAL is adding capacity on six domestic routes from Cebu, including three routes that are also experiencing increases from Cebu Pacific.

New international services, including four that were launched at Cebu over the last three weeks, will help support the domestic expansion as they provide a new source of feed. However the domestic expansion will likely lead to overcapacity on several routes, impacting profitability in a highly price-sensitive domestic market that has already experienced a large surge in capacity over the last year.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 2,054 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 400 News Briefs every weekday and comprehensive data and analysis on thousands of companies around the world.