Philippine Airlines (PAL), the country’s flag carrier, is accelerating its logistics transformation with a refreshed brand identity and a wider suite of services under its revitalized cargo arm, PAL Cargo.
This move aims to capitalize on booming e-commerce, shifting global trade dynamics, and a growing demand for efficient freight solutions.
In a media briefing on Monday, PAL unveiled a digital-forward overhaul of its cargo operations, introducing new delivery options and plans to integrate loyalty rewards, as the airline seeks to grow cargo’s contribution from 5% to 8–9% of total business revenues.
“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,” said Jason T. Siy, PAL Vice President for Cargo.
To better serve diverse customer needs, PAL Cargo now offers:
- Easy Cargo for general commodities
- Prime Cargo for pharmaceuticals and high-value shipments
- Live Cargo for animals and pets (following IATA transport standards)
- Rush Cargo for time-critical deliveries
A port-to-door delivery service, developed in partnership with Grab and Lalamove for shipments under 20kg, is set to launch soon. Customers can book directly via the PAL website, with pricing already integrated.
The cargo unit is also preparing to integrate PAL’s Mabuhay Miles frequent flyer program, allowing shippers to earn miles on transactions, and plans to roll out a mobile app to streamline booking, payments, and tracking.
In Q1 2025, PAL carried 52.6 million kilograms of cargo, with revenues rising by 6% to ₱2.04 billion, on track to exceed the ₱9.16 billion posted last year. Despite tariff threats from the United States—its top export market—Siy remains confident.
“Even during the initial US tariff implementation, cargo slowed for only a few days,” he noted. “It’s a volatile but resilient business.”
With its cargo terminals in Manila, Clark, Cebu, and Davao, and strategic global partnerships, PAL Cargo supports both domestic MSMEs and exporters—reaching even areas outside the airline’s direct flight network.
A formal partnership with the Department of Trade and Industry (DTI) is expected in the coming months, aimed at helping small businesses access international markets.
The airline is also preparing to list PAL Cargo on Cargo One, an international digital platform for freight forwarders, expanding its accessibility and visibility worldwide.
New PAL President Richard Nuttall described the cargo sector as “much more interesting than the passenger business,” citing its agility in adapting to geopolitical changes, including U.S. tariff policies.
Amid a projected 5.8% global rise in cargo traffic this year, PAL’s investment in modernization and diversification positions it to thrive in an increasingly digital and fast-paced logistics environment.
“This is not just a logistics refresh—it’s a commitment to empowering Filipino businesses to compete globally with safe, smart, and competitive cargo solutions,” Siy said.
