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Monday, June 02, 2008

 

Costly fuel clips domestic travelers’ wings

By Darwin G. Amojelar, Reporter

DOMESTIC air travel in the Philippines expanded in the first quarter of the year, but at a slow pace given the rising prices of jet fuel.

The Civil Aeronautics Board (CAB) said domestic passengers grew 14 percent to 2.73 million in the first three months of the year from 2.39 million in the same period last year.

In 2007, domestic air travel rose 23 percent to 10.38 million from 8.46 million in the previous year.

From January to March this year, the seat capacity of the country’s five major carriers went up by 7.3 percent to 3.37 million from 3.15 million in the same period last year.

The increase in the first quarter this year resulted in an average passenger load factor of 81 percent over 76 percent a year ago, reflecting a steady growth in passenger demand.

The industry load factor measures the number of seats occupied during a flight.

Cebu Pacific had a load factor of 84 percent from January to March this year, against PAL’s 81 percent.

PAL’s budget unit, Air Philippines, flew 318,809 passengers; Asian Spirit, 136,047; and Southeast Asian Airlines (SEAIR), 8,721 passengers.

Porvenir Porciuncula, CAB deputy executive director and head of economic planning, said domestic travel is projected to grow by 15 percent this year, down from 22.7 percent last year.

“We expect slower growth this year [because] the price of basic commodities is higher,” Porciuncula said, adding that rising prices could take the itch out of Filipinos’ travel bug.

To cope with the rising costs and attract more travelers, local airlines have stepped up their promotional offerings.

Cebu Pacific early this month bared its “free” flights in all domestic destinations, while rival PAL cut fare for its local and international flights. The price war among local carriers has intensified against the backdrop of skyrocketing jet fuel prices, which are seen to deeply narrow the airlines’ margins.

  
 

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