PAA Registers Profit

Strengthens Domestic Network

9 March 2020

Low cost carrier airline AirAsia Philippines (PAA) has registered profit to its operations last year as it reported ₱1.87 billion in revenue, recovering from the ₱3.51-billion losses it incurred in 2018.

AirAsia Philippines CEO Ricardo Isla said the airline was focusing on its domestic expansion after the Philippine government imposed travel bans on China and South Korea, threatening up to 30 percent of its revenue.

“The airline’s financial target for this year has been greatly affected by the outbreak”, Isla said.


The airline plans to raise $200 million from an initial public offering this year to further expand its fleet. It hopes to double the number of its planes to 50 in the next two years.

But Isla said they may have to refocus its energy right now amid the raging corona virus (Covid-19) outbreak.

PAA said it may have to push back further the initial public offering (IPO) it proposes by third quarter this year to late 2021.

“We have to revisit and review the figures. We have to be practical,” adds Isla.

“To us the most important thing is to put focus on the domestic expansion,” he said.

PAA claimed a market share of 23 percent, up 4 percentage points, in 2019.

The airline will open Zamboanga and General Santos in March 29 both from Clark and Cebu. It will replace the axed Clark-Seoul route which ends March 28.

AirAsia’s destinations in Mindanao include Davao and Cagayan de Oro, which started operations in 2015 and 2018, respectively.

The airline operates 24 aircraft in more than 500 weekly domestic and international flights from Manila, Clark, Cebu and Kalibo.