MCIA operator eyes new markets as fuel costs weigh on travel demand

THE OPERATOR of Mactan-Cebu International Airport (MCIA) is working with hotel and tourism stakeholders to roll out coordinated contingency plans and diversify source markets as rising fuel costs threaten to dampen travel demand.

In a statement on Tuesday, Aboitiz InfraCapital Cebu Airport Corp. (ACAC) said it recently convened an industry dialogue with hotel operators and tourism groups to address the potential impact of global oil price pressures linked to the ongoing Middle East crisis.

Participants included bai Hotel, Shangri-La Mactan Cebu, Tambuli Seaside Resort and Spa, Crimson Resort and Spa Mactan, Mercure Mactan Cebu, Savoy Hotel Mactan Newtown, Nustar Resort and Casino, Jpark Island Resort and Waterpark Mactan, Sheraton Cebu Mactan Resort, and Waterfront Airport Hotel and Casino, as well as the Philippine Chamber of Commerce and Industry – Lapu-Lapu and the Hotel Resort and Restaurant Association of Cebu, Inc.

During the dialogue, ACAC flagged rising jet fuel prices as a key risk to the aviation sector, noting that higher fuel costs could lead to increased airfares and, in turn, affect passenger traffic and travel demand.

While MCIA recorded strong passenger volumes in the first quarter, the airport operator said demand may begin to soften as early as June if global conditions persist.

“The aviation and tourism sectors are deeply intertwined. When global headwinds like surging jet fuel costs put pressure on our airline partners, our industry inevitably feels the impact,” said Athanasios Titonis, chief executive officer of Aboitiz InfraCapital Operating Airports.

He said the company is working closely with industry partners on scenario planning and operational alignment to better manage potential disruptions.

ACAC said it is also exploring opportunities to expand connectivity by tapping new and emerging source markets to support travel demand.

The airport operator added that similar dialogues will be held in other Aboitiz-managed gateways, including Laguindingan International Airport in Misamis Oriental and Bohol-Panglao International Airport in Bohol, to strengthen coordination across key tourism hubs.

MCIA serves as a major gateway to the Visayas and Mindanao and is operated by Aboitiz InfraCapital, the infrastructure arm of the Aboitiz group. — Juliana Chloe A. Gonzales