16/03/2026
PAL IS FACING INCREASING COMPETITION ON ITS BREAD-AND-BUTTER ROUTES
We are well aware that Philippine Airlines’ bread-and-butter routes have always been its North America routes. We have seen their expansion there through new routes and added capacity. They recently opened Manila–Seattle flights and are also looking to open Manila–Chicago, contingent on DOT approval.
However, they have also been facing more competition. United began flying nonstop flights between San Francisco and Manila and has even increased capacity to two daily Boeing 777-300ER flights. Air Canada has also started Vancouver–Manila flights. Now, Delta reportedly wants to fly from Los Angeles to Manila beginning in Summer 2027. Los Angeles is a major bread-and-butter route for PAL, and they may soon face competition there as well.
Competition is actually good because it brings out the best from competitors, and the winners are the passengers. This is also no time for PAL to relax, and definitely the time for them to continue improving their hard product offering. Their A350-1000 cabin already set the bar, and I hope this becomes consistent throughout the fleet. PAL’s cabin crew inflight service is their greatest strength, and really, this is why PAL has to take care of them. However, a strong hard product such as seats, comfort, amenities, and cabin experience, plus superb cabin crew inflight service, will be the best one-two combination to go head-to-head against their competitors and keep their market share on those routes.
It is also a good thing that PAL continues to expand its interline agreement with American Airlines while at the same time increasing its capacity to Los Angeles by going up to 18 weekly flights beginning in June of this year.
However, they also need a strong hard product because this is something passengers always consider the most, and this is where both of their A350 variants come in: the A350-1000 and the A350-900. While the A350-900’s seats are not as updated as the A350-1000’s, they are still better than those in PAL’s present Boeing 777 cabins, unless PAL also updates its 777 cabins with Mabuhay Studio business class seats and updated premium economy seats similar to those on the A350-1000. By the end of 2026, PAL should already have six A350-1000s at its disposal, possibly covering its JFK, LAX, and SFO flights.
PAL’s A350-900, again, as I have always mentioned in my previous posts, provides a lot of flexibility by allowing PAL to add capacity without sacrificing load factor, making it more adaptable to different travel demand seasons, while still offering a consistent product experience throughout the fleet. Their current business class and premium economy hard products are still top-notch, but of course, I still want to see these birds fitted with Mabuhay Studios too in the near future. They are very fuel-efficient, quiet, and have a lower cabin altitude.
Based on my personal analysis, if PAL operated these two aircraft against their competitors while increasing capacity, they would have the edge against them in terms of both hard product and soft product. Plus, of course, their partnership with American Airlines and Southwest on some inter-US flights would greatly help.
Of course, this would be even better if accompanied by more competitive airfares. Then again, people nowadays want value for money, and the airline that provides the best value for money is usually the winner.
So how about the current Boeing 777s in the PAL fleet? Well, it was once reported that PAL is considering retrofitting them too in 2027, and if that happens, that would be even better. Then again, those planes are already somewhat old compared to the A350s, and usually, older planes have higher maintenance costs. However, those 777s are very versatile, and this has been proven countless times by different airlines.
And I am also not discounting the possibility of Alaska Airlines offering Seattle–Manila flights. But that, we still have to wait and see.
For now, let us see how things will go, but I do hope PAL will not take the competition lightly. Competition is good, and when taken seriously, PAL can use it to its advantage by offering superb fares combined with superb hard and soft products. Their A350-1000 and A350-900 may just do the trick.
And again, going back to my personal thought, PAL should consider adding more A350-900s to their fleet, or in the remotest possibility, getting back those four A350-900s now with Lufthansa.
