Why a Philippine Domestic Flight Can Cost More Than an International Trip

MANILA, Philippines – The seemingly paradoxical situation where flights to some of the Philippines’ most sought-after island paradises can cost more than traveling abroad is a complex issue rooted in airport economics and operational constraints, according to Tourism Undersecretary Stanley Ng. Ng, who previously served as President and Chief Operating Officer of flag carrier Philippine Airlines (PAL), shed light on this during the Department of Tourism’s (DOT) 2027 budget hearing. Ng explained that destinations like Siargao in Surigao del Norte, and Busuanga and El Nido in Palawan, primarily rely on smaller turboprop aircraft with capacities of around 70 to 80 passengers. Even with multiple daily round trips, the total number of seats available is limited, typically around 400. In contrast, major hubs like Cebu can accommodate larger aircraft, carrying hundreds of passengers per flight, which allows airlines to spread operational costs more thinly across a larger passenger base. A significant contributing factor is the lack of night-rating at many provincial airports. This means their operating hours are restricted to daylight, lacking the necessary facilities to handle flights after dark. "Most airports are not night-rated... so the time of operation is limited to just the day," Ng stated, highlighting the operational window difference compared to airports like Cebu that can operate around the clock. These limitations—fewer seats per flight and restricted operating hours—result in higher fares, even when tourist demand is robust. Ng emphasized that scaling up capacity is the most direct way to reduce airfares. This issue is not new. Past comparisons have shown that a Vietnam travel package, including airfare and accommodation, could cost roughly the same as airfare alone to Siargao. While the DOT is actively promoting domestic travel through campaigns like "Discover More to Love," the cost-competitiveness of local tourism products remains a challenge. To address the capacity issue, the Department of Transportation (DOTr) and the Civil Aviation Authority of the Philippines are undertaking infrastructure projects. These include lengthening runways to accommodate larger jet aircraft and making more provincial airports night-capable. For instance, Busuanga Airport's runway is being extended to 2,100 meters to handle larger jets, with completion expected by the first quarter of 2027. Siargao's terminal is also undergoing expansion, and runway extension is being considered. For more immediate relief, the DOT is exploring a potential fuel subsidy program. However, details regarding its cost, eligible routes, and the extent to which it would translate into lower passenger fares are still under development. Information Source: Rappler Business