Dubai flights relaunch still uncertain as Philippine Airlines resumes Doha route

Rio de Janeiro: Dubai flights remain uncertain for Philippine Airlines even as the carrier prepares to resume services to Doha next month as the Mideast conflict continues to batter regional aviation.

Speaking on the sidelines of the International Air Transport Association (IATA) Annual General Meeting in Rio de Janeiro, Philippine Airlines President Richard Nuttall said the airline plans to restart Doha flights from July 1 but has not yet decided when Dubai services will resume.

“We’ve announced that we will be flying back to Doha from the first of July. We haven’t made a decision on Dubai yet,” Nuttall told Gulf News. In an earlier announcement, the airline had said Dubai flights would remain suspended until August 2.

Philippine Airlines (PAL) has reduced capacity on its Middle East routes and delayed the return of some Gulf operations due to the US-Israel-Iran conflict. Prior to the recent disruptions, Philippine Airlines operated regular services to Dubai, Doha and Riyadh, with the Middle East accounting for roughly 7 per cent of the airline’s overall capacity, according to Nuttall.

The comments came as Philippine Airlines formally accepted an invitation to join the OneWorld Alliance, a global airline group with 16 member carriers including Qatar Airways, British Airways, Cathay Pacific and American Airlines.

Nuttall said PAL had trimmed planned capacity by around 15 per cent over the summer as airlines globally grapple with elevated fuel prices.

“The problem with high fuel prices is that it moves up costs in a low-margin industry, so unfortunately fares have to go up a little bit,” he said. He added that the carrier was reducing capacity in some markets temporarily to better match demand.

“Year over year, we’re probably down by about 5 per cent,” he said.

Despite the adjustments, Nuttall stressed the cuts were temporary and did not affect the airline’s long-term growth plans. “The Middle East was about 7 per cent of our capacity, and those routes were doing reasonably well,” he said. “It affects us, but it’s manageable.”

He added that fuel prices remained the biggest concern for airlines globally. “The real negative is the fuel price,” he said.

Like many carriers worldwide, PAL expects ticket prices to remain elevated while fuel prices stay high. Nuttall said airlines were unable to absorb the full increase in fuel costs without adjusting fares.

“You need to keep fares a little bit higher, because otherwise you’re losing money on every flight,” he said. The airline is currently covering only part of the fuel increase through fare hikes while adjusting capacity route by route.

PAL also said it had deferred around $100 million in capital expenditure as part of broader cash management measures during the period of uncertainty.

Despite the temporary pressure on operations, PAL confirmed it is preparing a new aircraft order expected to be announced in the coming months. “We will be ordering new planes,” Nuttall said. “If you wait a couple of months, you’ll probably find out,” he said, without offering any additional details.

The airline is also continuing to take delivery of Airbus A350-1000 aircraft for long-haul operations, while some Airbus A321neo deliveries may be delayed slightly. Philippine Airlines currently operates a fleet of roughly 84 aircraft, according to aviation fleet tracking data from Planespotters.

PAL also has additional aircraft on order, including Airbus A350-1000s and A321neos, as part of its long-term expansion and fleet modernisation plans.

The airline’s expansion plans come as PAL moves closer to joining the OneWorld Alliance, strengthening the group’s footprint in Southeast Asia. The alliance said PAL’s entry would add 33 destinations to the OneWorld network and improve connectivity across the Philippines and the wider Asia-Pacific region.

OneWorld said the integration process is expected to be completed during 2027.

Nuttall said the partnership would help strengthen PAL’s international reach through closer cooperation with alliance members.

“The Philippines is one of Asia’s fastest-growing economies and among the region’s most dynamic travel markets,” he said.

He added that PAL’s domestic network and growing international operations would provide stronger access across the Philippine archipelago and Southeast Asia.