Local airlines and the government are aligning on a strategy to lower domestic travel costs by addressing the “infrastructure gap” that currently drives up ticket prices across the Philippines.
Airline operators argue that infrastructure constraints at regional airports are a primary driver of high domestic airfares.
According to Cebu Pacific, upgrading provincial airports with night-rating capabilities and stronger runways for larger jets would enable better fleet utilization and lower per-seat costs, resulting in more affordable domestic fares.
“Having said that, government is one of the biggest enablers to lower ticket costs whether its through the removal of travel taxes and such or providing proper infrastructure,” the Gokongwei-led airline said in an email interview.
The airline welcomed the government’s move to lower the price of domestic tickets, stating it supports their goal of providing affordable domestic travel.
Cebu Pacific said that the initiative complements their strategy of offering low-cost options while optimizing operational efficiency.
“CEB always tries to keep prices as low as possible in line with its mission of providing affordable travel for everyJuan. In general, the prices of domestic flights are not higher than international ones,” the airline said.
“Determining pricing involves multiple factors, such as the type of aircraft the airport can accommodate, frequency of flights due to airport capacities, taxes and fees, fuel price fluctuations, and of course seasonality and passenger demand,” it added.
Jose Enrique Perez de Tagle, Executive Director of the Air Carriers Association of the Philippines (ACAP), echoed Cebu Pacific’s concerns, noting that structural cost pressures—including airport charges, taxes, and infrastructure limitations—heavily impact domestic flight economics.
He explained that short runways force airlines to use smaller turboprop aircraft. Because these planes have fewer seats, the cost per passenger is higher, making it difficult to serve certain domestic markets sustainably and affordably.
Despite these challenges, de Tagle said that domestic passenger volumes have surpassed pre-pandemic levels, signaling a robust market that continues to drive local tourism.
Data from the Civil Aeronautics Board (CAB) showed air passenger traffic in the Philippines grew by 6.3 percent reaching 46.84 million during the first nine months of 2025.
This surge was bolstered by a 5.36 percent increase in domestic travelers (24.95 million) and a robust 7.25 percent rise in international passengers, which totaled 21.89 million.
In response to industry concerns over infrastructure gaps, Transport Secretary Giovanni Lopez announced a nationwide initiative to extend all regional and provincial runways to a minimum of 2,100 meters.
The move aims to accommodate larger jet aircraft in key areas, including popular tourist hubs like Siargao, to help drive down domestic ticket prices.
Lopez clarified that all airports failing to meet this standard will be upgraded, provided there are no topographical constraints. Alongside runway extensions, the DOTr and CAAP are prioritizing the night-rating of tourist airports. By enabling evening and early-morning operations, the government expects increased flight frequency to offer more competitive pricing for passengers.
Beyond aviation, the Lopez highlighted maritime alternatives. The Philippine Ports Authority (PPA) has completed a cruise terminal in Siargao, now serviced by 2GO.
“The fare is only P3,500,” Lopez noted. “While the trip takes approximately 28 hours, it offers a high-quality, cruise-like experience for budget-conscious travelers.”
Additionally, the DOTr and CAAP are currently reviewing potential reductions in terminal fees at government-operated airports to further ease the financial burden on travelers.
