Philippine domestic aviation market lags in COVID-19 recovery

Premium Analysis

Airlines in the Philippines have not benefitted from the same rate of domestic demand recovery as airlines elsewhere in the region.

Although there are some encouraging signs emerging in Dec-2020, a dramatic rebound will be elusive while domestic travel restrictions remain in place.

The local airline industry was already entering a pivotal period before the pandemic, with Philippine Airlines (PAL) looking to reorganize itself to achieve long term financial stability, and multiple efforts under way to address long-standing airport capacity issues in Manila.

Now the COVID-19 pandemic has amplified aviation industry problems and prompted all parties to re-examine their strategies. But the key first step will be gaining more momentum in the restoration of domestic capacity.

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