Airlines see continued rise in demand through Q4

MANILA – Two airline companies have expressed optimism that the rise in demand for travel would continue until the fourth quarter and that their pre-pandemic levels could be surpassed by 2024.

South Korea's flag carrier Korean Air (KAL) on Tuesday reported that its passenger business revenue for the third quarter rose by 76 percent year on year, or about 2.55 trillion Korean won.

The airline attributed the sharp increase to the strong demand during peak season, especially the first summer and Chuseok holiday post-pandemic.

In its financial report sent to reporters, KAL forecast a continued increase in passenger demand in the fourth quarter, and eyes restoring its pre-pandemic seat capacity levels.

It will work on maximizing profits by securing new demand and operating additional special flights, the report added.

KAL's revenue for the third quarter was 3.86 trillion won, 5 percent higher year on year.

Meanwhile, in a statement, low-cost carrier Cebu Pacific (CEB) said they are optimistic about the travel demand in the fourth quarter, as the Gokongwei-led airline saw a 55 percent domestic market share in October.

"We expect that by the end of the year, our systemwide network will be at 103 percent of pre-pandemic levels; domestic will continue to exceed pre-pandemic levels, while international is seen to be at about 93 percent,” CEB chief executive officer Michael Szucs said.

He added that by yearend, CEB expects to service 60 destinations through more than 100 routes and at least 2,700 weekly flights.

CEB is also looking forward to an increase in seat capacity, between 5 percent and 8 percent more in 2024.

“We continue to explore various opportunities to supplement the fleet and ensure operational resilience, including securing both brand new and used aircraft, as well as exploring aircraft leases,” Szucs said. (PNA)