Philippine LCCs contributed 96% of domestic travel growth over 6 years

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Philippine low-cost carriers contributed 96% of total domestic travel growth over last six years.

Full service carriers such as Philippine Airlines contributed 4% to the growth in the same period, says Cebu Pacific's vice-president for marketing and distribution Candice Iyog.

Half of the domestic travel was made on LCCs in 2006, and the number grew to 76% in 2011, says the airline. Average fares are 30% cheaper than 10 years ago despite the rise in fuel prices, allowing people to travel on a more frequent basis.

Despite the growth in domestic travel, the airline believes that hurdles such as safety concerns and infrastructure limitations continue to hinder its growth.

Many of the 81 airports in the country remain unequipped for night landings or have restricted operating hours, leading to air traffic congestion or cancelled flights due to daylight limitations, says Iyog.

The airline estimates 10-15% annual growth in its passenger outlook as it plans to expand its route network with the launch of long-haul low-cost services.

"We expect delivery of 56 brand-new Airbus A320s, A321neos, and A330 aircraft until 2021," says Iyog.