PAL Cargo hopes to secure 9% total business share

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'We aim to be at least fair share — around 8% to 9% of our total business should be cargo,' says PAL Cargo vice president for marketing Alvin Miranda

MANILA, Philippines – Philippine Airlines (PAL) is hoping to increase the share of its shipping business, banking on the promise of advertising.

The flagship airline launched on Monday, June 16, the new brand identity of PAL Cargo as the business plots for expansion in the coming years.

“For now, our share of business is 5% cargo, but we’re not getting fair share. When you benchmark against other airlines, they’re probably at 7% to 8%,” PAL Cargo vice president for marketing Alvin Miranda told reporters.

“But the 5%, we’re getting that without even advertising for PAL Cargo. We don’t have an identity yet,” he added. “We aim to be at least fair share — around 8% to 9% of our total business should be cargo.”

In 2024, the cargo business saw a 12% increase, contributing $159.7 million to PAL’s $3.13 billion revenues. The passenger business accounted for $2.7 billion, while ancillary revenues totaled $271.7 million.

New branding

PAL Cargo renamed its services to make it easier for the public to navigate:

• Easy Cargo: For the delivery of general commodities
• Prime Cargo: For those that need “special or advanced handling” (e.g. medicines, vaccines)
• Live Cargo: For shipping pets and other live animals
• Rush Cargo: For any urgent deliveries

Clients may book via the PAL website. According to Jason Siy, vice president of PAL’s cargo business, they are planning to detail specific requirements for the shipping of live animals on the website.

Meanwhile, PAL Cargo has tapped the services of Grab and Lalamove for a port-to-door delivery option for items below 20 kilograms. Siy said bookings for port-to-door services are made directly on the PAL website, as pricing for both companies has already been consolidated.

“There are other features coming up…. We plan to use [a] mobile app,” Siy told reporters.

“Payments, we want to make it easier, so we can do online payments. It’s all a work in progress now, along with our efficiency in operations.”

The company will soon be on Cargo One, an online platform that will allow PAL Cargo to be accessed by freight forwarders all over the world.

Positive outlook

Siy told reporters that PAL Cargo is targeting a 5% to 10% revenue increase in 2025.

“It’s challenging, but the goal is really, you want to increase the volume,” he said.

Richard Nuttall, newly installed president of PAL, noted that the airline’s cargo business is “much, much more interesting than the passenger business.”

“This industry is always changing,” Nuttall said. “If currency’s changed, you’ll find the product that goes in one direction stops and gets sourced from another country.

“And [on] the passenger side, you know, we’re worrying about the impact of Mr. [Donald] Trump and what he’s doing to passenger travel, but that’s probably nothing compared with what’s happening with the impact of the tariffs.”

Siy said shipments “slowed down a bit [in] February during Trump’s executive order.” However, the company retains a positive outlook, despite changing policies, noting the resilience of the industry.

According to a media release on April 25, PAL’s cargo business carried 52.6 million kilograms of cargo in the first three months of the year.

“As we all know, e-commerce is growing every year, and the demand… despite the trade wars, tariffs — there’s a cost disruption, but eventually, cargo will still grow by the year,” said Siy. – Rappler.com