The Center for Asia Pacific Aviation wants Philippine Airlines to take a break from expanding its international routes, and instead plan ahead of possible higher fuel prices.
“Low fuel prices and improved profitability give PAL an opportunity to take a pause to let all the international capacity added in recent years be fully absorbed. Now is the time to pursue relatively modest expansion and plan for a possible future with higher oil prices,” CAPA said in a report.
The think tank said PAL’s international expansion over the couple of years was “extremely ambitious,” which increases the size of its international network by 70 percent in three years.
“PAL is extremely fortunate to have oil prices plummeted just as it was expanding rapidly, particularly given its acquisition of A340s. But PAL cannot bank on oil prices remaining at its current level,” CAPA said.
PAL’s international network will exceed 40 destinations in January 2016 compared with only 25 in January 2013.