Airlines may sustain growth amid travel pickup

Airline companies in the Philippines are expected to sustain their gains this year as airport investments including the rehabilitation of the country’s major gateway drive investor sentiment, analysts said. “It is a positive sign that major airlines are investing in fleet and network buildup,” Juan Paolo E. Colet, managing director at China Bank Capital Corp., said in a Viber message on Wednesday. “In addition, airport investments and efficiencies, such as through the privatization and rehabilitation of the Ninoy Aquino International Airport (NAIA), will help create more favorable conditions for the airline industry.” The Department of Transportation has set the signing of the concession agreement for the rehabilitation, operation and maintenance of NAIA by March after attracting four bidders for the upgrade project. Easing inflation and growing travel demand are also expected to drive the profitability of local airlines this year, Colet said. The Philippines recorded 5.45m international visitors in 2023, surpassing its 4.8m target, the Tourism department said. This year, the agency is targeting 7.7m visitors. “Airlines saw a recovery last year given normalizing travel conditions and revenge travel,” Rastine Mackie D. Mercado, research director at China Bank Securities, said in an e-mail. “We expect continued improvements this year, with the IATA expecting Asia-Pacific international passenger volumes to surpass 2019 levels.”<br/>