Aboitiz InfraCapital Expects Its Airports to Exceed 16.7-Million Passenger Arrivals Target
Key Takeaways
- •Aboitiz InfraCapital expects passenger traffic across its three Philippine international airports to exceed the company's 16.7-million arrivals target for the year.
- •Chief Executive Cosette V. Canilao said the first four months of the year were strong, though the prolonged war in the Middle East has had some impact on travel.
- •AIC operates Mactan-Cebu, Laguindingan, and Bohol-Panglao international airports, which serve as the primary air links for their respective regions.
- •Low-cost carrier AirAsia voluntarily terminated its Bohol operations, including the Manila-Panglao route, effective Oct. 1, pending broader network and scheduling adjustments, with Bohol bearing the greatest impact among the three airports.
- •The company anticipates stronger passenger volumes during the November-December holiday season, and the final result will hinge on that rush and the outcome of AirAsia's network review.
Aboitiz InfraCapital, Inc. (AIC), the infrastructure arm of the Philippine Aboitiz group, said it is confident that the airports in its portfolio will exceed the 16.7-million passenger arrivals target set for this year, even in the face of a fuel crisis that has dampened travel.
"I think it's going to be a bit higher," AIC President and Chief Executive Officer Cosette V. Canilao told reporters on the sidelines of an event on Monday.
"The first four months of this year were really strong, but because of the prolonged war, there's a bit of an impact," she said.
Three-airport portfolio
AIC operates three international gateways in the Philippines: Mactan-Cebu International Airport, one of the country's busiest airports, located on Mactan Island in Cebu; Laguindingan International Airport in northern Mindanao, the main air gateway for the Cagayan de Oro area; and Bohol-Panglao International Airport, which serves the tourism-driven island province of Bohol.
For the regions they serve, these three airports are the primary air links, so carrier decisions on routes and schedules translate directly into travel options for residents and visitors — a dynamic now playing out in Bohol.
"Out of the three airports that we have, I think Bohol is suffering from the AirAsia's reduction of flights," Ms. Canilao said.
Low-cost carrier AirAsia voluntarily terminated its Bohol operations, including its Manila to Panglao route, effective Oct. 1, pending broader network and scheduling adjustments.
Rising travel costs
Air travel costs have risen due to the volatility of fuel prices and the effect of the fighting in the Middle East, developments that have weighed on travel demand.
Despite the headwinds, Ms. Canilao said the company remains optimistic about passenger traffic in November and December, when holiday-related travel is expected to pick up.
How the final months unfold — the strength of the November–December holiday rush and the outcome of AirAsia's pending network and scheduling review — will shape whether the portfolio clears the 16.7-million mark.
AIC is the infrastructure arm of Aboitiz Equity Ventures, one of the Philippines' largest conglomerates, whose businesses span power, banking, food, and infrastructure.
— Beatriz Marie D. Cruz, BusinessWorld
Source: BusinessWorld
