Aviation Festival Asia 2026 kicked off with a conversation between Richard Nuttall, President of Philippine Airlines (PAL) and Danny Lee from Bloomberg News. In a wide-ranging interview, the interview covered fuel prices, modernisation, and market expansion amid geopolitical instability.
Unsurprisingly, the jet fuel crisis incited by the US-Israel attack on Iran was a dominant theme. While Nuttall said PAL have been forced to increase ticket prices due to higher fuel costs, he highlighted aviation’s resilience in difficult times:
The industry goes through a crisis every few years. So, I think the first thing to remember is that it’s not the end of the world. Our airline is 85 years old and it’s been through many crises.
PAL has been in profit for four years now, which Nuttall notes will be important in supporting the airline through the current difficulties. He joined as President after three years as CEO of Sri Lankan Airlines. When he arrived in summer 2025, the airline was halfway through executing a modernisation strategy designed to reduce reliance on legacy systems and improve operational operations post-Covid. New fuel-efficient aircraft are entering the fleet, which Nuttall believes will still be a worthwhile investment even in a market where fuel prices remain high.
When it comes to aircraft deliveries, at the moment, we’re not talking about delaying anything.
PAL’s next target for growth is the North American market, home to a significant multi-generational Filipino population. As a rule, these customers have more disposable income than residents of South East Asia. And while competition between airlines on these routes is fierce, Nuttall believes PAL can offer lower prices while standing out a a national carrier. To strengthen their customer appeal further, like most legacy carriers PAL are investing in premiumisation. Nuttall tells Lee:
We fly in a part of the world with many of the world’s best full-service carriers. So we’re working very hard to make sure that the premium products are in line with best-in-class.
Nuttall and his team have also been working hard to get the basics right. PAL are now the number-one airline in APAC for on-time performance (OTP) following a successful drive to improve passenger satisfaction in this area.
Nevertheless, he acknowledges that planning for the future remains difficult at the moment given the ongoing instability of the Middle East. The government of the Philippines have declared a national emergency to manage the fuel crisis. Nuttall concludes by exhorting fuel companies, airlines, and governments to work together to alleviate the difficulties, adding:
I’m sure there’ll be a way through. We just hope it’s sooner rather than later.
Watch the full keynote interview with Richard Nuttall and Danny Lee below.
Join us at World Aviation Festival 2026 to discuss the long-term impacts of the Middle East conflict.
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