Malacañang confirmed on Thursday that major carriers have agreed to reduce airfares on key tourism routes, including Siargao, after mounting public complaints that flights to local destinations cost more than trips abroad.
The move follows concerns raised by the Department of Tourism (DoT) that high airline prices are hampering the country’s tourism recovery.
Presidential Communications Office Undersecretary Claire Castro said the issue of expensive domestic flights has been under discussion, noting that travel to places like Siargao can cost more than international trips.
She said airlines cited operational factors, including the use of smaller aircraft that carry only 60 to 70 passengers but incur costs similar to larger jets. Smaller planes are often the only aircraft that can serve island destinations, making flights more expensive.
Castro said acting Transportation Secretary Giovanni Lopez has met with airline executives, including Philippine Airlines and Cebu Pacific, who agreed to reduce fares, particularly on Siargao routes.
She added that the Civil Aeronautics Board also reminded airlines to lower fuel surcharges when global fuel prices drop, which should lead to lower ticket prices.
Still costly
Lopez earlier disclosed at a House budget hearing that Philippine Airlines is set to cap one-way fares to and from Siargao at P11,000, down from more than P17,000.
He described the new ceiling as a significant reduction, though still above PAL’s typical one-way average of P7,500 to P8,000.
In Congress, Camarines Sur 3rd District Rep. Nelson Legacion urged government agencies to confront the rising cost of domestic air travel.
“For many Filipino families today, a flight-and-hotel package to a nearby Asian destination can be cheaper than flying to our own islands,” Legacion said. “Tourism cannot grow sustainably if the basic act of getting there becomes a luxury.”
He noted that tourism contributed nearly 9 percent of gross domestic product in 2024, but international arrivals fell short of targets for two straight years.
The Department of Tourism aimed for 7.7 million foreign visitors in 2024 but recorded 5.9 million. Arrivals dipped further in 2025, prompting the agency to lower its 2026 goal.