Aggressive pricing boosts domestic passengers by 21% in Q1


With Cebu Pacific carrying the most number of passengers

by Lenie Lectura


Manila - DOMESTIC passenger air traffic from January to March this year rose by 21 percent to 3.40 million compared with 2.76 million in the same period a year ago aided by the airline’s aggressive pricing strategies, data from the Civil Aeronautics Board (CAB) showed.

Philippine Airlines (PAL), Cebu Pacific, Air Philippines, Zest Airways and Seair all transported a total of 3,403,699 passengers out of the possible 4,294,678 seats for domestic travel during the period.

Of the total number, Cebu Pacific, the airline unit of conglomerate JG Summit, recorded 1,609,405 passengers compared to Philippine Airlines 1,512,614.

Cebu Pacific recorded a load factor of 81 versus PAL’s 80 percent during the period out of a possible 1,961,324 seats for Cebu Pacific and 1,897,118 seats allocated by PAL.

Air Philippines, the low-cost partner of PAL, recorded 124,516 passengers out of the possible 198,292 seats; Zest Airways, formerly Asian Spirit, reported 114,611 passengers and 193,236 allotted seats; and Seair transported 42,724 passengers as of end-March this year with 94,709 seats.

Air Philippines reported a load factor of 74; Asian Spirit with 59 percent; and Seair with 78 percent.

Air Philippines is 99 percent owned by the Lucio Tan Group. PAL, however, is 95 percent owned by Tan.

The total load factor or the number of seats occupied during a flight rose to 76 percent in the first quarter from 75.6 percent in the same period last year.

CAB deputy executive director Porvenir Porciuncula said the airlines continued to offer aggressive pricing strategy and search for and opening of new domestic routes.

2 comments:

  1. This aggressive pricing strategy is good for consumers but sometimes service suffers. It is also good for the secondary airports such as Cebu.

    ReplyDelete