The International Air Transport Association (IATA) expects the airline industry, particularly in Asia, to maintain growth in 2026 due to strong demand in both the passenger and cargo sectors.
“The air transport industry continues to demonstrate resilience amid persistent non-fuel cost pressures and operational constraints,” IATA said in a report.
The airline trade association forecasts strong revenue growth in 2026, as carriers adapt to softer yields by expanding support services and maintaining high load factors through efficient fleet utilization.
“Cost discipline is central to maintaining profitability in this low-margin business. While fuel prices have stabilized, non-fuel costs, particularly labor and maintenance, are increasing due to pilot shortages, wage inflation and an aging fleet,” IATA said.
Rizal Commercial Banking Corp. chief economist Michael L. Airlines in the Philippines continue to improve, Ricafort said, adding that domestic passenger rates have still not returned to pre-pandemic levels despite the influx of foreign tourists.
Passenger fuel surcharge remains stable, with the Civil Aeronautics Board (CAB) maintaining the surcharge at Level 4 for the sixth month in January.
Jet fuel prices fell 3.8% to $86.73 a barrel in the week ended December 26; On a year-on-year basis, the global average jet fuel price declined by 12.4%.
IATA estimates that Asia-Pacific will lead global growth, as regional airlines report growing passenger traffic. CAB said air passenger volume rose 6.247% to 46.84 million for the nine months ending September due to growth in domestic passenger traffic.
Domestic passenger volume was 24.95 million, up 5.36% from a year earlier. International passengers increased 7.25% to 21.89 million.
PAL Holdings, Inc., operator of flag carrier Philippine Airlines. reported a 33.58% increase in net income for the first nine months to P9.03 billion, supported by passenger revenue of P116.56 billion, up from P115.66 billion.
Cargo and auxiliary revenues contributed P6.71 billion and P12.67 billion, respectively.
Meanwhile, Seibu Air, Inc., operator of budget carrier Cebu Pacific. reported a net income of P5.03 billion for the nine months, reversing a net loss of P12.05 billion a year earlier.
Consolidated revenues for the period rose 78.3% to P66.90 billion.
Passenger revenue for the first nine months rose to P46.13 billion, more than double the earlier P22.48 billion. , Ashley Erica O. jose