By Myla Iglesias
CEBU Pacific (CEB) is set to reduce weekly flights to China by 60 percent this winter season but will continue to expand its operations in the Southeast Asian market to sustain its growth.
Citing low traffic and the tension between the Philippines and China, Alexander Lao, CEB president and chief commercial officer, said the company is scheduled to suspend flight operations to Xiamen and Shenzhen, China, this winter 2024.
This will reduce flight frequency to China to between six to eight per week compared to pre-COVID with flight frequencies between 18 to 21 per week.
CEB also suspended the planned reopening of flights between Manila and Beijing.
“We’ll make the formal announcements but we’re going to suspend that until further notice,” Lao said.
“So we don’t think there will be a quick recovery in China. And in fact, it’s not just Cebu Pacific but it’s other airlines. For example, I think Qantas had pulled out of Sydney to Shanghai. That’s quite a lucrative route pre-COVID. And for them to have pulled out of Sydney to Shanghai, and that’s quite a lucrative route pre-COVID,” he added.
With this, CEB is moving some of its routes from China to other places such as Chiang Mai, Thailand, and Da Nang, Vietnam.
“We are hopeful the Chinese market will recover. It’s an important pillar in our tourism, in our tourism numbers, almost 2 million in 2019. But, you know, we have to be pragmatic as well. Considering the existing relationships between the Philippines and China, it’s better suited maybe for us to redeploy our assets elsewhere and cater to demand where we see it,” Lao said.
This October, CEB is set to launch new domestic and international routes with flights from Manila to Dong Mueang, Bangkok, and flights between Cebu to Don Mueang, Bangkok; Masbate; San Vicente, Palawan; and Osaka, Japan.
CEB is also looking at opening a new hub in Iloilo to expand further its international routes.
Lao said CEB will achieve its over 24 million passenger target this year driven by its aggressive route expansion in the fourth quarter. Last year, it flew over 20 million passengers.
To date, CEB said, its systemwide capacity has reached 123 percent with a total of 94 domestic and international routes.
Lao said in August weekly flights reached 3,200.
CEB currently offers flights to 35 domestic and 26 international destinations spread across Asia, Australia and the Middle East.
Low traffic forces carrier to reduce flights to China
