en.Wedoany.com Reported - Richard Nuttall, President of Philippine Airlines, revealed during the International Air Transport Association (IATA) Annual General Meeting in Rio de Janeiro that the airline expects to resume flights to Doha on July 1, but has yet to determine a resumption date for the Dubai route.
Nuttall stated that Philippine Airlines has announced the restart of Doha flights from July 1, while no decision has been made regarding the Dubai route. The airline had previously extended the suspension of Dubai flights until August 2. Due to the situation, Philippine Airlines has reduced capacity on its Middle East routes and delayed the resumption of some Gulf routes. According to Nuttall, prior to the recent disruptions, the airline operated regular flights to Dubai, Doha, and Riyadh, with Middle East routes accounting for approximately 7% of its total capacity.
Amid rising fuel prices faced by global airlines, Philippine Airlines has cut its summer planned capacity by about 15%. Nuttall noted that high oil prices have increased costs in this low-margin industry, necessitating slight fare increases. The airline is temporarily reducing capacity in some markets to match demand, with capacity down about 5% compared to the same period last year. Nuttall emphasized that these cuts are temporary and do not affect long-term growth plans, adding that Middle East routes, which account for 7% of capacity, are performing well, with fuel prices remaining the biggest concern for global airlines.
Similar to many global carriers, Philippine Airlines expects airfares to remain high amid elevated fuel prices. Nuttall stated that the airline cannot fully absorb rising fuel costs without adjusting fares, and ticket prices need to be slightly higher to avoid losses on each flight. The airline currently covers only part of the increased fuel costs through fare hikes and adjusts capacity on a route-by-route basis. As part of cash management measures during uncertain times, Philippine Airlines has deferred approximately $100 million in capital expenditures.
Despite operational pressures, Philippine Airlines confirmed it is preparing a new aircraft order, expected to be announced in the coming months. Nuttall said the airline will order new planes but provided no specific details. The airline continues to receive Airbus A350-1000 aircraft for long-haul operations, while some deliveries of Airbus A321neo may be slightly delayed. According to aviation fleet tracking data from Planespotters, Philippine Airlines currently operates about 84 aircraft and has ordered additional Airbus A350-1000 and A321neo units as part of its long-term expansion and fleet modernization plans.
Philippine Airlines has formally accepted an invitation to join the OneWorld Alliance. The global airline alliance comprises 16 member carriers, including Qatar Airways, British Airways, Cathay Pacific, and American Airlines. OneWorld stated that Philippine Airlines' membership will add 33 destinations to the alliance network and improve connectivity in the Philippines and the broader Asia-Pacific region, with the integration process expected to be completed by 2027. Nuttall said this partnership will help expand Philippine Airlines' international reach through enhanced cooperation with alliance members, noting that the Philippines is one of Asia's fastest-growing economies and one of the region's most dynamic tourism markets.
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