The Producer Price Index (PPI) for the Air Transport industry division rebounded sharply, registering an annual increase of 9.0 percent in the second quarter of 2026.
This marks a significant turnaround from the 6.0 percent annual decline recorded in the first quarter of 2026 and a 10.1 percent decline in the same period a year ago, according to the latest data released by the Philippine Statistics Authority (PSA).
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Annual Rebound: The overall industry PPI climbed to 9.0% in Q2 2026, reversing the downward trends seen in both Q1 2026 (-6.0%) and Q2 2025 (-10.1%).
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Driver of Annual Growth: The positive annual trajectory was primarily propelled by passenger air transport, which surged by 9.0 percent following a 6.0 percent decline in the previous quarter.
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Freight Sector Performance: Bucking the overall annual trend, freight air transport recorded an annual decline of 16.0 percent in the second quarter of 2026.
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Quarter-on-Quarter (QoQ) Movement: On a quarterly basis, the PPI for air transport contracted by 1.0 percent in Q2 2026, cooling down from the robust 20.5 percent increase registered in Q1 2026. This quarterly slowdown was driven by a 1.0 percent decrease in passenger air transport and an 11.6 percent decline in freight air transport.
Summary of PPI movements for air transport:
| Indicator | Q2 2026 | Q1 2026 | Q2 2025 |
| Industry Division (Overall) |
+9.0% (Annual) -1.0% (QoQ) |
-6.0% (Annual) +20.5% (QoQ) |
-10.1% (Annual) |
| Passenger Air Transport |
+9.0% (Annual) -1.0% (QoQ) |
-6.0% (Annual) +20.5% (QoQ) |
N/A |
| Freight Air Transport |
-16.0% (Annual) -11.6% (QoQ) |
N/A | N/A |
The Producer Price Index measures the average changes in prices received by producers for their output. It serves as a vital economic indicator for tracking inflationary pressures and market trends within specific industry sectors.
