Listed aviation companies in the Philippines are expected to post stronger results in the second half of the year as travel demand improves, but analysts warned that renewed tensions in the Middle East could derail the recovery by driving jet fuel prices higher and squeezing airline margins, according to BusinessWorld.
Rising jet fuel costs typically account for a significant portion of airline operating expenses, and any sustained increase could offset gains from higher passenger traffic. The Philippine aviation sector has been gradually recovering from the pandemic, but global geopolitical risks remain a key threat to profitability.
Industry observers noted that airlines may need to adjust fares or hedge fuel costs to mitigate the impact. However, competitive pressures and consumer sensitivity to price hikes could limit their ability to pass on higher costs.