Philippine Airlines (PAL) said it has shored up its jet fuel reserves for the “foreseeable future,” seeking to calm markets after President Marcos warned that the regional energy crisis could potentially ground the country’s carriers.
In a statement on Wednesday, March 25, the flag carrier, controlled by billionaire Lucio Tan III, said it has secured enough inventory to maintain its full schedule, including fuel-heavy long-haul routes to North America and the Middle East.
“Philippine Airlines is closely monitoring global and regional developments affecting jet fuel supply and pricing,” the company said in a statement. While the airline did not disclose specific inventory levels or the duration of its hedges, the carrier said its current position is stable.
PAL assurance follows the assessment from President Marcos, who told Bloomberg News on Tuesday that grounding planes is a “distinct possibility” if the fuel crunch worsens.
With the Philippines importing approximately 98 percent of its crude oil from the Middle East, the closure of the Strait of Hormuz has created a bottleneck for the refined products essential to flight operations.
The national government has since declared a state of “national energy emergency,” as domestic fuel reserves have reportedly thinned to a 30-day buffer. Beyond simple scarcity, the cost of operations is surging; jet fuel prices in the Singapore hub have spiked more than 100 percent since late February.
To mitigate these risks, PAL said it is coordinating with the Department of Energy (DOE) and suppliers including Petron Corp. and Shell Pilipinas Corp. Part of the “prudent planning” includes managing “tankering” operations—a practice where aircraft carry extra fuel from Manila for return trips to avoid refueling in foreign airports that have begun restricting supplies to international carriers.
Despite the supply guarantee, the financial pressure is mounting. The Civil Aeronautics Board recently shifted to a 15-day monitoring cycle for fuel surcharges to help airlines recover costs more quickly.
