SYDNEY: Philippine Airlines, which has been reporting losses on its New York route, expects cost efficiency to improve on long-haul flights after it switches to the fuel-efficient Airbus A350-900 in October, its chief executive said.
The new airplane will allow it to fly non-stop on long routes, a feature business travelers favor.
The company currently uses Boeing Co’s 777 to fly to New York, with a stop in Vancouver, Canada, CEO Jaime Bautista said at the annual meeting of the International Air Transport Association (IATA) in Sydney on Tuesday.
“That is why the profitability is not good but at least we are recovering all direct operating expenses,” he said, adding the company’s daily flights to London were not as profitable as he would like and the company was looking at the possibility of replacing those flights with the A350 as well.
While there is demand for long-haul flights as more Asians travel to Western countries, gas guzzling aircraft are a problem with oil at more than $70 a barrel after years of cheap fuel, and rising labor and infrastructure costs.
Airline companies including Singapore Airlines, Australia’s Qantas Airways Ltd. and US-based United Continental Holdings Inc. are adding ultra-long haul flights that can charge an airfare premium of around 20 percent versus flights that have one or more stops.
Last week, Singapore Airlines said it would launch the world’s longest commercial flight in October, a near-19 hour non-stop journey from Singapore to the New York area.
On this route, the airline is likely to fly the Airbus A350-900ULR, an ultra-long range version of the fuel-efficient twin-engine A350 jet.
Singapore Airlines, however, operates in a stronger business travel market than regional rivals Philippine Airlines and Vietnam Airlines JSC, which in February said long-haul flights are more an obligation than an option as the country’s flag carrier.
Philippine Airlines will take delivery of 15 planes this year, including the Airbus 321neo, to fly non-stop from Manila to Brisbane, Australia and to Mumbai and New Delhi in India, Bautista said.
The company said last month it was seeking regulatory approval for an increase in fuel surcharge to counter the higher fuel costs and a weak peso, after a 36 percent jump in fuel costs wiped out annual profits.
Airline executives meeting in Sydney this week said the industry’s profitability was being threatened by fuel costs that were rising faster than ticket prices, prompting some to lock in fuel hedges, lower capacity and raise fares.
Philippine Airlines expects to be more cost efficient on long-haul flights
Philippine Airlines expects to be more cost efficient on long-haul flights
- The company currently uses Boeing Co’s 777 to fly to New York, with a stop in Vancouver, Canada
- Philippine Airlines will take delivery of 15 planes this year, including the Airbus 321neo, to fly non-stop from Manila to Brisbane, Australia and to Mumbai and New Delhi in India
First EU–Saudi roundtable on critical raw materials reflects shared policy commitment
RIYADH: The EU–Saudi Arabia Business and Investment Dialogue on Advancing Critical Raw Materials Value Chains, held in Riyadh as part of the Future Minerals Forum, brought together senior policymakers, industry leaders, and investors to advance strategic cooperation across critical raw materials value chains.
Organized under a Team Europe approach by the EU–GCC Cooperation on Green Transition Project, in coordination with the EU Delegation to Saudi Arabia, the European Chamber of Commerce in the Kingdom and in close cooperation with FMF, the dialogue provided a high-level platform to explore European actions under the EU Critical Raw Materials Act and ResourceEU alongside the Kingdom’s aspirations for minerals, industrial, and investment priorities.
This is in line with Saudi Vision 2030 and broader regional ambitions across the GCC, MENA, and Africa.
ResourceEU is the EU’s new strategic action plan, launched in late 2025, to secure a reliable supply of critical raw materials like lithium, rare earths, and cobalt, reducing dependency on single suppliers, such as China, by boosting domestic extraction, processing, recycling, stockpiling, and strategic partnerships with resource-rich nations.
The first ever EU–Saudi roundtable on critical raw materials was opened by the bloc’s Ambassador to the Kingdom, Christophe Farnaud, together with Saudi Deputy Minister for Mining Development Turki Al-Babtain, turning policy alignment into concrete cooperation.
Farnaud underlined the central role of international cooperation in the implementation of the EU’s critical raw materials policy framework.
“As the European Union advances the implementation of its Critical Raw Materials policy, international cooperation is indispensable to building secure, diversified, and sustainable value chains. Saudi Arabia is a key partner in this effort. This dialogue reflects our shared commitment to translate policy alignment into concrete business and investment cooperation that supports the green and digital transitions,” said the ambassador.
Discussions focused on strengthening resilient, diversified, and responsible CRM supply chains that are essential to the green and digital transitions.
Participants explored concrete opportunities for EU–Saudi cooperation across the full value chain, including exploration, mining, and processing and refining, as well as recycling, downstream manufacturing, and the mobilization of private investment and sustainable finance, underpinned by high environmental, social, and governance standards.
From the Saudi side, the dialogue was framed as a key contribution to the Kingdom’s industrial transformation and long-term economic diversification agenda under Vision 2030, with a strong focus on responsible resource development and global market integration.
“Developing globally competitive mineral hubs and sustainable value chains is a central pillar of Saudi Vision 2030 and the Kingdom’s industrial transformation. Our engagement with the European Union through this dialogue to strengthen upstream and downstream integration, attract high-quality investment, and advance responsible mining and processing. Enhanced cooperation with the EU, capitalizing on the demand dynamics of the EU Critical Raw Materials Act, will be key to delivering long-term value for both sides,” said Al-Babtain.
Valere Moutarlier, deputy director-general for European industry decarbonization, and directorate-general for the internal market, industry, entrepreneurship and SMEs at European Commission, said the EU Critical Raw Materials Act and ResourceEU provided a clear framework to strengthen Europe’s resilience while deepening its cooperation with international partners.
“Cooperation with Saudi Arabia is essential to advancing secure, sustainable, and diversified critical raw materials value chains. Dialogues such as this play a key role in translating policy ambitions into concrete industrial and investment cooperation,” she added.
