Weaker peso to raise airfares – Cebu Pacific

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January 26, 2026 | 12:00am

MANILA, Philippines — Travelers would have to pay more for their airfares this year if the peso fails to recover in foreign exchange, as airlines settle the bulk of their flying costs in dollars.

Cebu Pacific, the country’s largest carrier by fleet and passenger size, expressed concern that flights may become costlier if the peso continues its struggles after dipping to a record-low 59.46 to a dollar on Jan. 15.

Cebu Pacific president and chief commercial officer Alexander Lao said the airline pays at least 70 percent of its expenses in dollars, mostly going to aircraft maintenance and jet fuel.

On the other hand, the airline sources much of its income from peso-paying passengers, especially as three in four of its guests fly domestically. In 2025, Cebu Pacific ferried a record 26.88 million travelers, of which 74 percent, or 19.99 million, were listed as domestic passengers.

“It is clearly a concern, the weakening peso, (because) I think roughly 70 percent of our costs are in dollars. We have to make adjustments in terms of prices if the peso continues to weaken,” Lao said.

Still, Lao believes the carrier can find a way to minimize the impact of the peso’s depreciation on fares, with the airline expanding its presence abroad to book more foreign guests.

Through this, Cebu Pacific can raise more revenues in foreign currencies, softening the impact of a weakening peso and allowing the airline to keep its fares as cheap as possible.

The airline owned by the Gokongweis plans to balance its sales portfolio by ramping up distribution efforts in select countries, including Australia, China and Japan.

For 2026, Lao said Cebu Pacific would be looking at opportunities in the government’s policy to allow visa-free entry for Chinese nationals. Last week, the Philippines started accepting Chinese nationals without requiring a visa, authorizing them to stay for up to 14 days.

At the height of the tourism surge prior to the pandemic, Cebu Pacific was operating as many as 35 flights to different cities in mainland China. However, the pandemic forced the airline to trim its flight volume, and demand has yet to return to pre-pandemic levels.

Lao said if the visa-free privilege heightens Chinese arrivals into the Philippines, Cebu Pacific is ready to assign more aircraft to fly to major cities like Beijing and Shanghai.

Cebu Pacific’s China capacity is currently limited to seven times weekly to Shanghai and four times a week to Guangzhou.