Philippine Airlines (PAL), the country’s premier flag carrier, is ramping up its cargo business to ensure it contributes a more substantial share to the company’s overall revenue. This move capitalizes on PAL’s extensive global and domestic network amid shifting global supply chains and growing cargo volumes.
On June 16, 2025, the Lucio Tan-owned airline officially launched PAL Cargo, reviving its legacy slogan “Care that Delivers.” With refreshed systems and a renewed identity, PAL aims to grow cargo’s contribution to total revenue from the current 5–6 percent to 8–9 percent.
“For now, our share of business is 5 percent cargo. But we’re not getting fair share when you benchmark against other airlines, they’re probably at the 7-8 percent. Of course, the goal is to increase,” said PAL Vice President for Cargo Jason Siy.
Vice President for Marketing Alvin Miranda echoed this sentiment: “8–9 percent of our total business should be cargo.”
The U.S. remains PAL’s largest cargo revenue source, with Los Angeles leading the way. “But New York, since it is far away, most of the time, it’s zero,” Siy said, noting that the goal is to improve performance across all routes. Aside from the U.S., other strong cargo markets include the Middle East, Australia, and Canada, though each route presents unique challenges.
To ensure nationwide reach and seamless movement, PAL Cargo operates a network of strategically located hubs. Its primary cargo terminal is based at Ninoy Aquino International Airport in Manila, with major hubs in Clark, Cebu, and Davao—key gateways for both domestic and international shipments.
“This extensive network allows PAL Cargo to provide efficient, end-to-end logistics solutions for customers across the archipelago and beyond,” Siy added.
According to the latest data from the International Air Transport Association (IATA), global air cargo demand continued its upward trajectory in April 2025, with total volumes rising 5.8% year-on-year. This growth was driven by strong international activity (+6.5%), seasonal consumer goods demand, and lower jet fuel prices—factors that have collectively improved conditions across the industry.
“It’s a good demand for the Philippine economy,” Siy said, adding, “It provides more opportunities for both local manufacturers and exporters, most especially MSMEs, to engage in international trade. With the expanding global market, we are dedicated to enabling Filipino businesses to reach it with safe, efficient, and competitive cargo solutions.”
Distinct Identity
Siy noted that the current 5 percent revenue share has been achieved without any advertising. With the official launch of PAL Cargo and its slogan “Care that Delivers,” the cargo division now has a clear brand identity.
“With this launch of the new identity, PAL Cargo Care that Delivers, we aim to be at least fair share,” Siy said during the media Q&A.
The PAL Cargo rebrand also aims to educate the public about its services. “A lot of people outside the cargo industry do not know that PAL carries cargo,” Siy noted. Jargon has also been simplified—“AVI”, for instance, refers to live animals, and shipment requirements for such cargo can now be found on the PAL website.
“The brand is ‘care’. We take care of the cargo because, for example, it’s medicine—it is very important essential goods,” he added.
Trade disruptions due to global tariff wars have partly driven cargo growth. Ongoing conflict in the Middle East may further impact global trade flows.
During the pandemic, PAL retrofitted some aircraft to accommodate cargo, which led to a temporary surge in volume. However, cargo volume declined as passenger travel resumed post-pandemic. Last year also saw a slowdown, although transit cargo—especially electronics from China en route to the U.S.—remained strong.
Regarding the ongoing tariff issues, Siy explained that freight forwarders are exploring new ways to move goods efficiently.
Freight Rates and Competition
PAL has yet to increase freight rates, as U.S. tariffs remain suspended. However, the airline has received a CAB-approved fuel charge adjustment.
Despite PAL’s position as the country’s largest airline, Siy emphasized the importance of staying competitive. “You have to be competitive. We all know, even for passengers, rates are very competitive,” he said. He also highlighted the importance of service quality: “If your service is reliable and good, I believe people will really go to you.”
Embracing the Digital Era
“In today’s digital-first economy, our revitalized business reflects PAL Cargo’s support for digital innovation, broader reach, and tailored logistics solutions that help local entrepreneurs grow and compete in both local and global markets,” Siy said.
PAL Cargo is streamlining the cargo process by embracing digital tools. Customers can now book, pay, and track domestic shipments online. A mobile-friendly platform is in development, with plans to expand digital services to international cargo.
To extend convenience, PAL Cargo is also introducing Port-to-Door delivery services, enhancing its current airport-to-airport model by integrating last-mile delivery via two-wheel and four-wheel partners.
“You don’t have to go here, we have an option for you wherein you can just book and then have it delivered,” said Miranda.
In the pipeline is the integration of Mabuhay Miles into PAL Cargo, allowing customers to earn miles on cargo transactions.
Two popular services under PAL Cargo are the Block Space Agreement, allowing clients to reserve long-term cargo space regardless of volume, and Rush Cargo, a premium option that guarantees space on specific flights.
Tailored Services
PAL Cargo caters to a broad range of customers—including individuals, freight forwarders, and corporations—and handles diverse cargo types such as pharmaceuticals, perishables, e-commerce packages, and high-value commodities.
To ensure safe handling, PAL adheres to strict standards, including IATA protocols for live animal transport and dedicated security escorts for high-value goods. These items are loaded last and offloaded first. Special security teams are also assigned to chartered flights.
In collaboration with Airspeed and the Department of Trade and Industry (DTI), PAL Cargo is making it easier for small businesses to ship products locally and abroad. A formal partnership with DTI is expected in the coming months.
“Through partnerships and our expanding cargo network, we aim to support both domestic entrepreneurs and the Philippine export industry. Even in areas we don’t currently fly to, our global partnerships allow us to extend our services and connect their businesses to the world,” Siy said.
Cargo: The Silent Contributor
Both PAL President Richard Nuttall and Miranda highlighted cargoes special role in the airline business.
“Cargoes don’t complain unlike passengers, who always complain and maybe rightly so, but cargoes are silent complainers. They’re not in social media, they’re not in our phones 24-7,” Miranda quipped. But with PAL, Miranda said, “Philippine Airlines cargo is the same look and feel as Philippine Airlines.”
“And we make things happen by ensuring that your shipments are safely and securely delivered to the 30 domestic destinations and 40 international destinations. So everything you care about, we’ll make sure to deliver for you,” added Miranda.
PAL Cargo is also advocating for sustainability in logistics, working with local governments and partners to minimize plastic use and reduce its carbon footprint. Its operations follow IATA environmental and safety standards, benefiting all stakeholders—ground handlers, airports, passengers, and beyond.
