Aboitiz InfraCapital is working with airlines to make new international routes commercially viable as it positions its airports for stronger year-end traffic, focusing on Asian markets that can deliver sustainable passenger flows.
AIC president and chief executive officer Cosette Canilao said the airport operator does not determine routes on its own. Instead, it works with airlines to identify promising destinations, test new connections, and build the demand needed to support commercially sustainable routes.
The strategy focuses on markets within four to five hours of the Philippines, where shorter travel times could support stronger load factors and more frequent travel. AIC sees opportunities in India, China, Taiwan, Vietnam, Japan, and South Korea, with new Vietnam routes already broadening its network.
“Travel is still very strong. People still travel,” Canilao said, noting that passenger performance has held up better than initially expected despite the Middle East conflict.
“We were pleasantly surprised that it’s not as dire as we thought it would be,” she said.
AIC expects passenger traffic to strengthen from November through the first quarter after the traditionally lean southwest monsoon period. The seasonal rebound could improve the economics of existing routes and support additional connections, potentially lifting traffic across its airport portfolio.
AIC operates Mactan-Cebu International Airport, Bohol-Panglao International Airport, and Laguindingan International Airport in Misamis Oriental, giving the infrastructure group exposure to tourism, international travel, and regional economic activity.
AIC also works with national and local governments, and hotel operators to strengthen destinations and generate demand around new routes. The broader aim is to give airlines a stronger commercial case for serving Philippine destinations.
The strategy faces risks from an escalation of the Middle East conflict, which could raise jet fuel prices or disrupt airline operations. Airlines could consolidate flights if higher costs or weaker demand hurt load factors.
Canilao said the competitive challenge is increasingly regional, with Philippine destinations vying with markets such as Vietnam for international travelers.
