FLAG carrier Philippine Airlines (PAL) emerged as the carrier of choice for international travel last year, helping the local market sustain modest gains in terms of passenger throughput in 2014.
International air traffic inched up modestly last year, as the decline in passenger throughput from foreign airlines offset the increase posted by local carriers.
Data gathered by the Civil Aeronautics Board showed that overall international air traffic was at 17.92 million passengers last year, up by 3.5 percent as compared to the 17.32 million passenger print in 2013.
Local airlines carried 9.19 million passengers in 2014, an 11-percent increase from the 8.19 million passengers served in 2013. Foreign carriers, however, saw their numbers tapering. They posted a 4.5-percent decline in passenger throughput to 8.72 million from 9.13 million.
PAL remained the top carrier with international services last year, carrying 4.98 million passengers during the said period. Cebu Pacific served 3.19 million international passengers. AirAsia Zest carried more international passengers than last year at 704,513.
Government officials were sought for comment, but none responded to the BusinessMirror’s queries.
Domestic air traffic, meanwhile, remained flat in 2014, after PAL experienced a sharp drop in its customer volume during the period, offsetting the increase that its competitors reported.
Local air travel stood at 20.35 million passengers as of end-December, a hairline difference from 20.33 million passengers in 2013.
Domestic and international air travel is expected to get a boost this year, after the regulator decided to scrap the fuel surcharge from airline fares owing to the declining prices of jet fuel in the international market.
The fuel surcharge is a temporary relief granted to airlines to help them recover losses incurred from high fuel prices. It ranges from P500 to as high as P15,000, depending on the destination.
Fuel accounts for as much as 60 percent of an airline’s operating cost per passenger, and is the second-highest expense next to labor.
Data from the International Air Transport Association showed that jet fuel was at $78.70 per barrel as of May 22, down by 7.1 percent from the preceding month and 35.8 percent lower than the year-ago price.