Philippine airfreight surges as export demand accelerates

Philippine international air cargo and mail volumes rose 16 percent year-on-year to 124.457 million kg in Q1 2026, driven by stronger export activity tied to electronics, apparel and e-commerce supply chains across Asia. Capacity remains heavily dependent on passenger airlines: Philippine Airlines and Cebu Pacific together handle just over a third of all traffic, with bellyhold space still forming the backbone of the country’s export logistics despite gradual growth in dedicated freighter capacity. The market is becoming more competitive and export-led, with outbound volumes rising 23 percent versus 10.4 percent for inbound flows, intensifying pressure on carriers and signalling the Philippines’ deeper integration into fast-moving regional supply networks. Philippine air cargo hits new heights as export demand reshapes Asia’s skies The Philippines’ international air cargo and mail sector is expanding at a pace that underscores a broader shift in regional trade flows, with volumes rising to 124.457 million kg in the first quarter of 2026, according to data from the Civil Aeronautics Board. The 16 percent year-on-year increase is not just a statistical uptick. It reflects a transport system under strain and transition at the same time: more outbound goods leaving the archipelago, tighter competition for lift, and a widening cast of airlines competing for a share of a market increasingly shaped by e-commerce, electronics supply chains and time-sensitive exports. At the centre of the system remain the country’s two dominant domestic carriers. Philippine Airlines handled 21.33 million kg, giving it a 17.14 percent share, while Cebu Pacific followed closely with 18.61 million kg, or 14.95 percent. Together they account for just over a third of all international air cargo and mail traffic. Their position is structurally significant. Both airlines rely heavily on passenger aircraft bellyhold capacity rather than dedicated freighter fleets, meaning cargo growth is closely tied to passenger network recovery, aircraft utilisation, and route planning decisions made primarily for passengers rather than freight. Yet the figures suggest that belly capacity remains the backbone of Philippine air cargo exports. A notable third player is Royal Air Charter Services, which carried 9.25 million kg, securing a 7.43 percent share. While still far behind the two largest operators, its presence in the top tier reflects a gradual reconfiguration of capacity, with more dedicated cargo lift entering a market historically dependent on passenger aircraft. Below the top three, the ranking reveals a tightly clustered field of international operators. Cathay Pacific Airways, Singapore Airlines, Air Hong Kong, FedEx, EVA Air, Korean Air and Emirates each hold between 3 percent and 6 percent of total volume, underscoring a highly competitive mid-market where marginal shifts in capacity deployment can quickly alter rankings. FedEx’s presence is particularly indicative of the Philippines’ growing role in express and time-definite logistics flows, while Air Hong Kong’s performance highlights the importance of regional feeder networks connecting Southeast Asia to global cargo hubs. The broader picture is one of diversification. While the market remains anchored by domestic carriers, international integrators and regional network airlines continue to play a crucial balancing role, particularly in handling high-value and urgent shipments. What stands out most is not simply growth, but direction. Outbound cargo rose 23 percent year-on-year, outpacing inbound flows at 10.4 percent, suggesting strengthening export activity. For an economy deeply embedded in electronics manufacturing, apparel, and increasingly e-commerce fulfilment, this imbalance points to a shifting centre of gravity in Philippine trade logistics.