Philippine Airlines long haul strategy Part 3: resuming Cebu-Los Angeles and new US destinations

Premium Analysis

Philippine Airlines is planning to resume services from Cebu to Los Angeles and launch at least one new US destination by the end of 2019 as part of an ambitious expansion plan for the North American market. PAL's trans-Pacific capacity, which has already increased by nearly 30% over the past year, should expand by approximately another 50% as Manila to New York and Toronto are upgraded to nonstop, Cebu-Los Angeles is resumed, and Chicago, Houston or Seattle is launched.

A new fleet of six A350-900s will drive the growth and be used on all the new US routes. The A350 enables PAL to improve its business class seat and introduce premium economy on long haul routes.

However, PAL will need to commit to 777 retrofits to provide a consistent product and improve its position in the increasingly competitive Southeast Asia-North America market. PAL also needs to secure a US airline partner if it is to succeed at expanding in a market already suffering from overcapacity.

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