Air traffic in the Philippines is projected to hit 66 million by 2028, driven by government efforts to put up new airports and industry push to expand flight coverage, according to the International Air Transport Association (IATA).
IATA country manager Samuel David said the Philippine aviation industry is on track for higher growth toward the close of the decade due to airport buildup and airline expansion.
Citing a forecast from IATA, David said the country’s air passenger volume is expected to grow by an average of 3.6 percent every year, until it climbs to 66 million by 2028.
David attributed the optimism to the bets made by low-cost carriers in the growth potential of the Philippines. Budget carrier Cebu Pacific, for instance, placed a $24-billion order for the addition of up to 152 jets from aerospace giant Airbus.
Similarly, David said the Department of Transportation (DOTr) is busy building new airports and upgrading existing ones. This is driving confidence among carriers to widen their flight network locally and globally.
‘DOTr has been spearheading initiatives to upgrade airports and aviation infrastructure with the aim of creating world-class facilities that can accommodate the increasing demands of domestic and international air travel,’ David said.
Further, main gateway Ninoy Aquino International Airport (NAIA) is seeing improvements in its facilities and services in line with its P170.6-billion upgrade led by the New NAIA Infrastructure Corp.
Soon, NAIA will be equipped with facial recognition, powered by Collins Aerospace, that would allow travelers to check in their bags, clear security and board flights using their face.
As of 2024, David said the aviation industry is contributing $20.3 billion yearly to the economy, measured as gross domestic product. This translates to 4.6 percent of the GDP, and IATA anticipates this to become bigger.
Likewise, the industry is providing direct and indirect livelihoods to at least 1.9 million Filipinos. To date, the Philippines is also one of the most connected countries in Asia and the Pacific, as it sends off 184 outbound international flights every day.
However, David warned that geopolitical factors and regulatory limits could hinder growth, as he also flagged issues on human capital and red tape.
Based on data from the Civil Aeronautics Board, the Philippines grew its air passenger traffic by 11 percent to 59.91 million in 2024, with Cebu Pacific making up the largest market share of 38 percent.