Airline companies in Asia Pacific, including those in the Philippines, are set to maintain their international capacity growth trajectory in 2025, according to the Centre for Asia-Pacific Aviation (CAPA).
While surpassing pre-pandemic levels is anticipated, CAPA said this growth would be tempered by ongoing aircraft availability issues.
“Airlines in this region are collectively already close to 2019 capacity levels in the international market; so it is likely that they will exceed that mark early in the new year,” it said.
Aside from a few key international markets, CAPA said the factors inhibiting capacity growth are no longer demand-related. “Airlines want to grow faster, but are frustrated by engine issues, delivery delays and supply chain bottlenecks,” it said.
“Aircraft orders by Asia Pacific airlines have soared over the past few years as airlines look to rebuild their fleets,” CAPA said, adding this trend would continue in 2025, with some key deals looming, although possibly to a lesser extent than in 2023 and 2024.
Cebu Pacific earlier announced that it signed a landmark purchase agreement with Airbus and Pratt & Whitney, an RTX business, for up to 152 A321neo aircraft, equipped with Pratt & Whitney GT engines.
The acquisition is the largest in Philippine aviation history, valued at about $24 billion (P1.4 trillion) based on list prices.
Last week, the Philippine budget airline took delivery of its 17th aircraft this year, a state-of-the-art A321neo, boosting its operational capacity and expanding its network
The 236-seater aircraft touched down in Manila on December 24, 2024, bringing Cebu Pacific’s commercial fleet to 91.
“The arrival of this new aircraft reinforces our readiness to meet the rising travel demand and our commitment to enhancing connectivity for our passengers in 2025 and beyond,” Xander Lao, Cebu Pacific president and chief commercial officer said.
Philippine Airlines also firmed up the purchase of nine brand-new Airbus A350-1000 long haul aircraft for its signature routes to North America and potentially to Europe.
These 380-seater new-generation jets, to be delivered starting 2025, will be the most advanced to fly the Philippine skies. The A350-1000 acquisition will put PAL firmly on the road towards operating one of the youngest and most modern widebody fleets in Asia.
Meanwhile, CAPA said the constrained capacity would help keep yields and revenue relatively high, although they may moderate somewhat in 2025.
“Collective profits in the region are expected to rise slightly, although financial fortunes will be mixed,” CAPA said.
“Factors such as elevated costs and geopolitical tensions will continue to put financial pressure on Asia Pacific airlines,” it said. Darwin G. Amojelar
