The Philippine government is moving quickly to remake its aviation network, with a new focus on airport upgrades that it says will ultimately lower the cost of domestic air travel. From extended runways in provincial hubs to bundled public-private partnerships for regional airports and modernization of the main Manila gateway, the Department of Transportation (DOTr) and the Civil Aeronautics Board (CAB) are positioning infrastructure as a key lever to bring down fares, expand seat capacity and improve reliability across the archipelago. For travelers, the message is clear: higher fees now are intended to fund better airports and, over time, more competition on routes that could help ease ticket prices.
Why Airport Development Is Now Tied Directly to Domestic Airfare
In a country of more than 7,600 islands, air travel is not a luxury but a necessity, especially for business, tourism and family connections. Yet in recent years, Filipino travelers have complained that domestic fares on key routes have climbed to levels that feel out of reach for many households. The DOTr and CAB have publicly acknowledged these concerns and, as of late January 2026, said they are implementing measures specifically aimed at lowering the price of airline tickets to local destinations.
The core of the new strategy is capacity. Officials argue that the size of aircraft and the number of seats available on each route are heavily shaped by airport infrastructure. Many provincial airports can accommodate only small turboprop planes because their runways are short and not designed for larger jet aircraft. That limits the number of passengers per flight and keeps per-seat costs high. By extending runways, strengthening pavements and upgrading navigation systems, the government believes it can enable airlines to deploy larger jets, spread operating costs across more passengers and eventually offer lower fares.
Regulators are also looking at operational constraints that indirectly raise prices. Some community airports are daytime-only facilities with limited lighting and navigation aids, which caps the number of daily movements and concentrates traffic in a few high-demand time slots. The DOTr has said it is working on projects to make more provincial airports “night capable,” allowing flights to operate after dark. The ability to schedule additional flights, particularly in the evening, could ease peak congestion and give airlines more flexibility to offer promotional fares.
Behind these technical moves is a broader policy shift under President Ferdinand Marcos Jr., who has directed agencies to improve connectivity by investing in aviation infrastructure. DOTr officials now describe airports not just as transport assets but as tools to influence fare structures, tourism growth and regional development. The latest announcements make clear that decisions about runways, terminals and operating hours are being taken with the explicit goal of reducing the cost of domestic travel over the medium term.
Runway Extensions and Night-Capable Airports: The Front Line of Cost Reduction
One of the most concrete elements of the new plan is a push to extend runways at smaller airports so they can handle larger aircraft. The DOTr and CAB have cited airports in Catarman, Siargao, Antique and Busuanga as examples of facilities that are currently restricted to small turboprop planes due to short runways. This limitation means higher operating costs per seat, fewer flight frequencies and, for passengers, more expensive and often fully booked services, especially during peak holiday periods.
Construction work to extend the runway at Antique’s airport is already underway, according to the transport department. Similar projects are planned for other regional airports where tourism demand is strong but infrastructure lags. Longer runways allow airlines to deploy single-aisle jets widely used in the region, such as Airbus A320 or Boeing 737 family aircraft, which can carry significantly more passengers than turboprops. With more seats per flight, airlines can distribute fuel, crew and maintenance costs across a larger number of travelers, creating room to adjust fares downward or at least moderate price hikes.
Parallel to runway works, the government is prioritizing upgrades that will make more airports capable of handling night operations. This includes installing or improving runway lighting, approach lights, and associated air navigation equipment. For travelers, the immediate benefit is a broader choice of departure and arrival times. For airlines, the ability to operate into the evening can help spread out their fleets more efficiently across the day, relieve daytime congestion at busy hubs and support additional frequency on popular routes.
The DOTr has stated that enabling more night-capable provincial airports should “increase flights at small airports” and contribute to fare reductions by boosting capacity. In practical terms, if a popular island destination can host early-morning arrivals and late-evening departures, carriers have greater incentive to open new routes or increase daily flights, knowing they can maximize aircraft utilization. That added capacity can put downward pressure on fares, particularly when multiple airlines compete on the same city pairs.
Bundled PPPs and New Operators: How Privatization Fits into the Picture
Infrastructure works are not being funded by the government alone. Regional airport development is increasingly tied to public-private partnerships, with the DOTr moving away from one-off concessions and toward “bundled” packages of airports offered together to private operators. In late 2025, officials revealed that nine regional airports are set to be grouped into two PPP bundles, each supported by major multilateral lenders as transaction advisers.
Under one bundle, prepared with the International Finance Corporation of the World Bank Group, the operations, maintenance and development of the airports in Davao, Dumaguete and Siargao are being packaged as a single project. A second bundle, being worked out with the Asian Development Bank, is expected to include the airports of Laoag, Bicol, Busuanga, Bacolod, Tacloban and General Santos. Once the projects obtain full approvals, they will be offered to private investors through solicited bidding, with the DOTr setting clear bid parameters.
The government’s rationale is that bundling stronger and weaker airports together can make investments more attractive while ensuring that smaller gateways are not left behind. Private operators bring capital and expertise that can speed up infrastructure upgrades, expand terminal capacity and introduce modern passenger facilities. While concessionaires will seek reasonable returns, officials argue that the resulting efficiency gains, higher throughput and more reliable services create conditions that, over time, enable a greater number of flights and competitive domestic fares.
Alongside the bundled PPPs, unsolicited proposals remain on the table. A consortium backed by major Philippine business groups has submitted an offer to operate and maintain the Davao, Bicol and Siargao airports, while other private firms are in discussions with the DOTr over development plans for airports such as Iloilo and Puerto Princesa. The department has also signed a separate long-term PPP deal for Laguindingan Airport in Northern Mindanao, entrusting operations and modernization of that key regional hub to a private infrastructure company over a 30-year concession period starting April 2025.
NAIA, New Gateways and the Domestic Pricing Puzzle
While the current spotlight is on provincial airports, changes at the capital’s main gateway in Manila will also influence the domestic travel landscape. In September 2024, a private consortium took over the operations of Ninoy Aquino International Airport (NAIA) under a multi-billion peso modernization program. As part of this deal, the operator confirmed that passenger terminal fees and other aeronautical charges at NAIA will begin rising in 2025, after more than two decades without major adjustments.
For domestic travelers, this means that terminal fees on flights using NAIA are due to increase, and airlines will also face higher landing, takeoff and parking charges. In the short term, such hikes tend to push ticket prices upward rather than down. However, the operator and government point to the broader benefits of a modernized airport system. NAIA’s expansion, combined with the planned New Manila International Airport in Bulacan and upgraded regional gateways, is expected to dramatically increase total passenger capacity in and out of the capital region.
In theory, this larger network of modern airports should enable airlines to open new point-to-point domestic routes, reduce their dependence on NAIA as a chokepoint and introduce more competition on popular corridors. If flights can be rerouted through improved hubs in Clark, Cebu, Davao, Caticlan or future gateways, passengers may see lower prices on some journeys because of reduced congestion, better slot availability and more efficient scheduling. The government frames current fee increases as part of a transition: higher charges now to fund infrastructure that will permit lower structural costs and more competitive pricing in the future.
For now, though, travelers booking through NAIA and other major gateways will need to factor in rising passenger service charges. The key question is how quickly infrastructure investments will translate into lower per-seat operating costs and whether airlines will pass a meaningful share of those gains to consumers through lower fares or expanded promotional offerings.
Fee Hikes vs Long-Term Savings: Understanding the Trade-Off
Recent policy moves illustrate a tension that many travelers will feel directly in their wallets. In April 2025, the Civil Aviation Authority of the Philippines implemented a significant increase in passenger service charges, more commonly known as terminal fees, at the airports it manages. For domestic flights, what had been a flat fee for all passengers is now a tiered structure, with higher charges at international and principal airports and a reduced fee at community airports.
The CAAP justified the fee adjustments as a long-overdue move to account for inflation and finance improvements in airport facilities and operations. It has emphasized that additional revenue will support efforts to enhance passenger experience, upgrade terminals and maintain safety standards across more than 70 airports under its jurisdiction. From an infrastructure standpoint, such investments are essential to keep pace with growing passenger numbers and modern aviation requirements.
However, in the near term, higher terminal fees and associated charges for landings, takeoffs, lighting and parking are likely to add to the cost base of airlines operating domestic routes. These carriers must balance the pressure of rising airport and fuel costs with consumer resistance to further fare increases. Some industry observers caution that, at least over the next one to two years, passengers may perceive air travel as more expensive before they see tangible benefits from better airports and expanded capacity.
The government’s response is to frame fee hikes as a necessary step on a path that should ultimately lead to lower per-kilometer travel costs. By improving infrastructure, enabling larger aircraft on more routes, and making provincial airports operational for longer hours, regulators hope to create a more efficient system where airlines can operate at lower average cost and still remain profitable. For travelers, it is important to understand this time horizon: terminal fee increases are immediate and visible, while the cost savings from new or upgraded infrastructure will be gradual and may appear first in the form of more frequent flights and occasional promotional fares rather than across-the-board price cuts.
Completed Upgrades and Ongoing Works Across the Regions
Beyond plans and policy statements, a substantial number of airport projects have already been completed or are in advanced stages. By mid-2024, the DOTr reported that it had finished 48 projects worth 6.6 billion pesos under the current administration, all aimed at upgrading regional airports. These works range from terminal rehabilitations and new taxiways to runway improvements and auxiliary facilities, spanning airports in Luzon, the Visayas and Mindanao.
Significant upgrades have been reported at Vigan Airport, Davao International Airport, and the terminals serving Butuan and General Santos City, among others. Several other provincial gateways, including Bacolod, Basco, Busuanga, Cauayan, Cuyo, Laoag and Palanan, have seen enhancements designed to improve safety and passenger handling. Many of these upgrades indirectly support the government’s objective of lowering travel costs by enabling more efficient operations, reducing delays and giving airlines greater confidence to mount new or additional flights to regional cities.
Looking ahead, the DOTr has requested a larger aviation infrastructure budget from Congress to sustain the pace of works in 2025 and beyond. Officials have highlighted the economic benefits of improved provincial airports, arguing that better connectivity encourages airlines to link regions directly to each other and to international destinations, rather than routing almost all journeys through Manila. Low-cost carriers are already responding, with some announcing new domestic and international routes out of regional hubs like Davao as infrastructure improves.
The modernization of Laguindingan Airport in Northern Mindanao is one illustration of this approach. Approved as a PPP by the National Economic and Development Authority, the project is expected to expand the airport’s capacity and improve its facilities, enabling it to serve more domestic and potentially international routes. As regions like Northern Mindanao attract higher volumes of travelers, airlines gain stronger economies of scale, which, in turn, can help restrain ticket prices over time.
What Travelers Should Watch For in the Next Two to Three Years
For domestic travelers, the immediate reality is a mix of higher airport fees and the promise of more options ahead. Those flying within the Philippines from 2025 onwards will notice increased terminal charges at many airports, particularly the larger ones. At the same time, they may begin to see new routes, improved schedules and better on-the-ground experiences as upgraded facilities open or expand across the country.
Over the next two to three years, key developments to watch include the progress of runway extensions at airports like Antique, Siargao and Busuanga; the rollout of night-capable operations at more provincial terminals; the bidding and awarding of bundled PPPs for groups of regional airports; and the pace of modernization works at NAIA and other major hubs. Collectively, these changes will shape how airlines plan their domestic networks, what types of aircraft they deploy and how aggressively they can price services on competitive routes.
Travelers can also expect ongoing public discussion about the trade-offs between airport fees and service quality. As private operators take over more gateways, questions will arise about how concessions are structured, what performance targets are set and how regulators ensure that investments lead to tangible benefits for passengers. The government has signaled that it intends to separate regulatory and operational functions more clearly, particularly in relation to the Civil Aviation Authority of the Philippines, to avoid conflicts of interest as more airports move into private hands.
Ultimately, the success of the Philippines’ airport development push will be measured not only by the number of ribbon-cutting ceremonies or total investment figures, but by whether ordinary Filipinos can afford to fly more frequently and more conveniently between islands. If runways get longer, terminals more efficient, and new regional hubs emerge that support larger, more economical aircraft, the promise of lower domestic travel costs stands a better chance of becoming a reality.