Philippines Air Freight Market

Philippines Air Freight Market Overview:

The Philippines air freight market size reached USD 1.44 Billion in 2024. Looking forward, the market is projected to reach USD 2.42 Billion by 2033, exhibiting a growth rate (CAGR) of 5.34% during 2025-2033. The market is majorly driven by the expanding e-commerce sector, which demands fast delivery and integrated logistics infrastructure. Air freight’s critical role in transporting pharmaceuticals, perishables, and high-value exports underscores its importance in supply chain continuity. Combined with infrastructure expansion and regulatory improvements, these factors are further augmenting the Philippines air freight market share.

Philippines Air Freight Market Trends:

Growing E-Commerce Sector and Demand for Express Delivery

The Philippines’ expanding e-commerce ecosystem is a major driver of growth for its air freight industry. Online marketplaces, fueled by increased smartphone penetration and affordable internet access, have accelerated demand for fast and reliable delivery services. Filipino consumers, particularly in urban centers like Metro Manila, Cebu, and Davao, expect expedited shipping for goods such as electronics, apparel, and beauty products. Air freight offers the most effective means of meeting these delivery expectations, especially for inter-island connectivity. In 2023, the Philippines handled 830,000 tons of air cargo, ranking as the 28th largest global air cargo market and 42nd in global trade, with Hong Kong serving as its top international gateway. This underscores aviation’s critical role in driving the country’s trade connectivity and economic integration. Logistics providers, including local startups and global freight integrators, are establishing partnerships with airlines to develop integrated delivery models. Warehouses and fulfillment centers near major airports are seeing targeted investments, streamlining order processing and air cargo handling. Additionally, improved air connectivity between Luzon, Visayas, and Mindanao is enhancing delivery speed for interregional shipments. Government support for logistics modernization through initiatives like the National Logistics Master Plan further strengthens infrastructure. This convergence of retail innovation, customer expectations, and logistics infrastructure development is central to Philippines air freight market growth, making air cargo indispensable for sustaining e-commerce expansion.

Infrastructure Development and Government Policy Support

Infrastructure development and supportive government policies are strengthening the Philippines’ air freight sector, addressing longstanding bottlenecks in cargo handling capacity. Projects such as the expansion of Clark International Airport and the development of New Manila International Airport in Bulacan reflect national efforts to decentralize air traffic and increase freight capacity. Additionally, modernization initiatives at regional airports are enhancing connectivity between the archipelago’s islands, facilitating smoother cargo movement. The Philippine Economic Zone Authority (PEZA) is also playing a role by offering incentives to logistics companies operating within special economic zones, encouraging private sector investment in warehousing and distribution infrastructure. In 2024, the gross value added (GVA) from the Philippines’ air transportation industry reached 123.54 Billion Philippine pesos, up from 106.28 Billion pesos in 2023. This growth highlights the sector’s recovering contribution to national output, underlining aviation’s growing importance to the Philippine economy. Furthermore, the Bureau of Customs has implemented digitalization initiatives, streamlining customs clearance processes for air cargo shipments. Combined with multimodal transport links, including road and seaport connections, these developments are fostering a more integrated logistics ecosystem. With continued emphasis on public-private partnerships, the government is positioning the Philippines to become a regional logistics hub. The alignment of infrastructure upgrades with favorable policies is solidifying the long-term potential of the country’s air freight sector.

Philippines Air Freight Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on service, destination, and end-user.

Service Insights:

• Freight
• Express
• Mail
• Others

The report has provided a detailed breakup and analysis of the market based on the service. This includes freight, express, mail, and others.

Destination Insights:

• Domestic
• International

The report has provided a detailed breakup and analysis of the market based on the destination. This includes domestic and international.

End-User Insights:

• Private
• Commercial

The report has provided a detailed breakup and analysis of the market based on the end- user. This includes private and commercial.

Regional Insights:

• Luzon
• Visayas
• Mindanao

The report has also provided a comprehensive analysis of all major regional markets. This includes Luzon, Visayas, and Mindanao.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Philippines Air Freight Market News:

• On May 1, 2025, Air Cargo News reported that Emirates and Philippine Airlines are exploring the expansion of their cargo interline partnership to enhance airfreight connectivity between Dubai and the Philippines. The agreement also aims to boost cooperation in ground handling, catering, technical training, and potential joint promotional initiatives. This move aligns with Emirates SkyCargo’s wider strategy to strengthen partnerships across Asia, supporting regional Philippines air freight market growth.
• On April 3, 2025, newly-launched Skyway Airlines of the Philippines appointed Hong Kong Air Cargo Terminals Limited (Hactl) as its ground handler for new e-commerce-focused freighter services to Hong Kong. Skyway operates six B737-400 freighter flights weekly, connecting Clark and Manila with Hong Kong, its first international destination. This development strengthens the Philippines’ dedicated cargo capacity, contributing to Philippines air freight market growth.

Philippines Air Freight Market Report Coverage:

Key Questions Answered in This Report:

• How has the Philippines air freight market performed so far and how will it perform in the coming years?
• What is the breakup of the Philippines air freight market on the basis of service?
• What is the breakup of the Philippines air freight market on the basis of destination?
• What is the breakup of the Philippines air freight market on the basis of end user?
• What is the breakup of the Philippines air freight market on the basis of region?
• What are the various stages in the value chain of the Philippines air freight market? 
• What are the key driving factors and challenges in the Philippines air freight market?
• What is the structure of the Philippines air freight market and who are the key players?
• What is the degree of competition in the Philippines air freight market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Philippines air freight market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Philippines air freight market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Philippines air freight industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.