PAL Cargo unveils ambitious growth plans despite tariff threats
(From left to right) PAL Vice President for Cargo Jason Siy, PAL President Richard Nuttall, PAL Executive Vice President / Chief Operating Officer Atty. Carlos Luis Fernandez, and PAL Vice President for Marketing Alvin Miranda (PAL Photo)
Flag carrier Philippine Airlines (PAL) has relaunched its cargo service to stay in tune with the latest developments in the cargo industry, amid the impending threat of tariff policies that could disrupt global trade.
During a media launch on Monday, June 16, the Lucio Tan-led airline unveiled the revitalized look for PAL Cargo, with a new focus on digital innovation, broader reach, and tailored logistics solutions.
Hitting the proverbial reset button, according to newly minted PAL President Richard Nuttall, is part of the airline’s effort to “refresh” the cargo service.
He said this is particularly vital due to potential headwinds arising from the planned reimplementation of the United States’ (US) tariff policy, which will impact the industry in particular.
Next month, the so-called reciprocal tariffs will likely be reimplemented, adding higher taxes on goods coming into the US.
If the tariff rates, as originally announced, are kept, the Philippines will face a 17-percent levy.
While this will inevitably spell trouble for the cargo industry, the country’s flag carrier is upbeat that PAL Cargo will continue to be robust despite the US being its top market.
PAL Vice President for Cargo Jason Siy acknowledged that while cargo is a volatile business, it is resilient to disruption or delay.
Siy recalled that cargo only slowed down for a “couple of days” when the US tariffs were initially imposed, and it has maintained a strong trajectory since.
In the first quarter of the year, PAL saw its revenues from cargo rise by six percent to ₱2.04 billion, from ₱1.92 billion in the prior year, carrying 52.6 million kilograms of cargoes.
On track to surpass the ₱9.16 billion in revenues recorded last year, Siy said the cargo business is expected to exceed the amount by five to 10 percent this year. This will potentially raise its contribution to PAL’s net income from five percent to eight to nine percent.
To reach the goal, PAL is introducing new offerings to its cargo service, such as port-to-door service, which will tap delivery providers to deliver cargoes directly to consignees.
The airline is also planning to integrate its frequent flyer program, Mabuhay Miles, to PAL Cargo, allowing customers to earn miles for their cargo transactions.
Likewise, it is set to introduce a mobile application to provide a more seamless access to the service.
PAL Cargo offers a wide range of freight services tailored to individual, corporate, and freight forwarders’ needs.
It transports varied types of cargoes, including high-value commodities, pharmaceuticals, e-commerce, perishables, and pets, among others.