Cebu Pacific backs airport privatization drive to boost expansion plans

Cebu Pacific, the country’s leading budget airline under the Gokongwei Group, has thrown its support behind the Marcos administration’s push to privatize regional airports, saying the initiative would play a critical role in expanding its operational capacity and achieving growth targets.

The airline aims to increase its passenger volume by 15 to 20 percent this year, following a record-breaking 24.5 million passengers flown in 2024. It sees regional airports as pivotal in achieving this goal, especially as several of these hubs were developed last year to accommodate more travelers.

“The important part with the regional airports is to see the continued development. We’re quite encouraged that the government is intending to privatize more airports,” said Cebu Pacific President and Chief Commercial Officer Xander Lao.

Lao emphasized that privatized airports create a more conducive environment for airlines to plan and expand, noting that improved infrastructure would enable Cebu Pacific to deploy larger aircraft and increase flight frequencies.

“We are excited about all of the privatization initiatives coming along, and we're looking to support that further as it allows us to expand our operations even further,” Lao said.

The Department of Transportation (DOTr) has been aggressive in its airport privatization campaign, which Transportation Secretary Vince Dizon recently described as a legacy initiative of the Marcos administration. Dizon noted that the government has already transferred the operations of three airports to the private sector—more than any previous administration.

These include the handover of Ninoy Aquino International Airport (NAIA) to the San Miguel Corp.-led New NAIA Infra Corp. in September 2024, Laguindingan International Airport to Aboitiz InfraCapital Inc. last month, and the scheduled turnover of Bohol-Panglao International Airport to the same firm next month.

“The President said we need to privatize as many airports as we can,” Dizon stated during a television interview.

The government is targeting the privatization of at least six additional regional airports as part of efforts to modernize the country’s transport infrastructure and enhance the travel experience for domestic and foreign tourists.

Lao also highlighted the need for upgraded infrastructure in regional hubs, particularly longer runways that can accommodate larger jet aircraft rather than just turboprops. Such enhancements, he said, would allow for greater connectivity and increase passenger traffic to tourism destinations outside of Metro Manila.

“Obviously because of the development of regional airports in the Philippines, we hope that some of the infrastructure outside Manila can now take jets,” Lao said. “That’s something we've expressed to the government, and we’re encouraged to see that the regional development continues,” he added.