The Philippines Is Planning For Massive Airport Growth

Asia remains a focal point for infrastructure development, with numerous countries advancing ambitious programs to upgrade existing airports and construct new ones to meet rising demand.

Within this, the Philippines is experiencing its own dynamic growth phase, driven by increasing private sector participation. Across the archipelago, a range of airport investment projects are either in progress or planned, set to reshape the nation’s aviation landscape and strengthen its role as a key hub in Southeast Asia.

Manila is at the center of this development. While the city’s Ninoy Aquino International Airport (MNL) remains the Philippines’ primary international gateway—handling approximately 80% of international traffic—decades of underinvestment have left the 76-year-old facility struggling with chronic congestion, outdated infrastructure and connectivity challenges.

To address these issues, a $3 billion modernization is planned under the leadership of New NAIA Infra Corp. (NNIC), a consortium that includes San Miguel Corp. (SMC) and South Korea’s Incheon International Airport. Following its official takeover in September 2024 through a newly established public-private partnership, NNIC has committed to transforming MNL into a “world-class” facility over the next 25 years.

“MNL has long been operating way beyond its intended capacity of 35 million passengers per year,” NNIC president Ramon S. Ang said, explaining that the airport handled about 50 million passengers in 2024. “Over the years, this has taken a huge toll on the already aging facilities and equipment at MNL, leading to inevitable breakdowns and inconvenience for passengers.”

Short-term changes include improved air conditioning, expanded seating, upgraded baggage handling systems, better Wi-Fi connectivity and enhancements to the electrical distribution system. Longer-term goals include linking MNL to the Metro Manila Subway and improving airside operations. A new terminal capable of accommodating 35 million passengers annually will also be built, raising the airport’s capacity to 62 million passengers per year.

The project is a centerpiece of President Ferdinand Marcos Jr.’s “Build Better More” agenda, which includes 197 flagship infrastructure projects aimed at addressing decades of lagging infrastructure development. Better collaboration between the public and private sectors is at the heart of the plan.

“There is no magic wand to fix all of the problems quickly,” Ang said. “We cannot solve, in a matter of months, issues that have existed or built up over many decades. In fact, more problems may crop up. But that is part of modernizing an old facility like MNL. We’re moving as fast as we can to address both immediate and major issues, and we’re putting all our resources into ensuring travelers will have an improved overall experience as we progress.”

BULACAN AND CAVITE PROJECTS

The redevelopment of MNL is one of two major airport projects in Manila being led by SMC. The conglomerate is also spearheading the construction of the $13 billion New Manila International Airport in Bulacan, approximately 22 miles north of the Philippine capital.

Although work on the facility has been delayed due to supply chain issues—with completion now slated for 2028—the first phase will include two runways, and a passenger terminal with an annual capacity of 35 million passengers. Additional phases could take capacity to around 75 million passengers.

A separate new-build scheme in Manila is also being brought forward by a consortium that includes Filipino construction investor House of Investments Inc. and the regional government of the Cavite province. The public-private partnership plans to invest $11 billion to create Manila Sangley Point International Airport, converting the existing Danilo Atienza military airbase in Cavite City.

Though still at an early stage, it is envisaged that the airport will be built in phases, starting with a single, 2,400-meter runway and a terminal with capacity for 25 million passengers per annum. Up to four runways could potentially be built to handle 100 million passengers annually.

While the Bulacan and Cavite City projects are advancing, Clark International Airport (CRK), located 50 miles northwest of Manila, has already achieved a significant milestone in its expansion efforts. In May 2022, the airport unveiled a new terminal, tripling its capacity from 4 million to over 12 million passengers annually.

The next phase of development includes constructing a second runway, additional taxiways, aprons, and improved landside access roads. Global shipping and logistics firm UPS is also establishing a new hub at CRK, with work set to begin in February ahead of a targeted completion date of late 2026.

This expansion forms part of the Luzon Economic Corridor, an ambitious initiative to enhance regional connectivity across Subic Bay, Clark, Manila and Batangas. The corridor seeks to decentralize economic activity from Metro Manila by leveraging strategic hubs like Clark.

Planned infrastructure projects include the Subic-Clark Railway, designed to facilitate efficient cargo movement, and the Clark Direct Access Link, a road network connecting the airport to major expressways. Additionally, the $140 million Clark National Food Hub—a facility to centralize and modernize the distribution, storage, and processing of agricultural products in the country—is being built on government-owned land surrounding CRK, which is being marketed to private investors as Clark Aviation Capital.

“Clark is part of the third largest regional economy in the Philippines, with a growth rate of 6% and a regional GDP of $39.4 billion,” Clark International Airport chief strategist and master planner Melissa Feliciano said. “We’re positioning Clark as a premier civil aviation and logistics hub, focusing on aviation, agrologistics, MRO and business tourism.

“These improvements will ensure smooth passenger and cargo movements, making Clark appealing to both passengers and airlines while supporting the growth of the corridor.”

Although Manila and the island of Luzon—home to about 64 million people—is a key focus for airport development in the Philippines, infrastructure group Aboitiz InfraCapital (AIC) is targeting regional growth after adding Mactan-Cebu International Airport (CEB) to its portfolio. The company, owned by the billionaire Aboitiz family, completed the full acquisition of the country’s second largest airport in late October 2024, two years after buying an initial 33.3% stake from joint-venture partners Megawide and GMR Airports International.

The deal is expected to bring increased investment in infrastructure. AIC is now conducting a comprehensive review of the airport’s current capacity and processes to identify opportunities for efficiency improvements. This includes potential terminal expansions and enhancements in connectivity between terminals.

“MCIA is more than just an airport; it’s a vital gateway to Cebu and the Philippines,” AIC VP and head of airports business Rafael M. Aboitiz said. “Given the airport’s expansive growth, with international and domestic traffic growing by 35% and 8% year-on-year, respectively, we will continue to elevate the airport and, thus, Filipino aviation by setting new standards for what it means to be a Filipino brand of airport management and operations.”

The growth of CEB is further bolstered by its close ties to MEZ2 Estate, a 63-hectare Philippine Economic Zone Authority-registered mixed-use development in Lapu-Lapu City, operated in partnership between AIC and the Mactan-Cebu International Airport Authority. MEZ2  Estate hosts companies engaged in light- to medium manufacturing, packaging, industrial logistics and warehousing for both local and export markets.

Alongside the investment in CEB, AIC has signed 30-year concession agreements on two more regional airports. In late 2024, the group won bids to upgrade, operate, and maintain Laguindingan Airport (CGY) in Misamis Oriental, and Bohol-Panglao International Airport (TAG) in Panglao, Bohol.

It plans to invest about $220 million to redevelop the Laguindingan facility, including renovating and expanding existing facilities, as well as $77 million in Bohol to upgrade the terminal. The Bohol investment will expand capacity by 25% to 2.5 million passengers within about two years, rising to almost 4 million by the end of the decade.

In addition, the Philippine government is advancing plans to privatize more airports across the country in a bid to improve infrastructure, increase capacity, and attract new airline services, among them Davao International Airport (DVO), the main gateway to Mindanao and the country’s third-largest airport, as well as Iloilo International Airport (ILO), Kalibo International Airport (KLO), and Bacolod-Silay Airport (BCD).

Transport Secretary Jaime Bautista stated that the government is collaborating with the Asian Development Bank to facilitate the privatization of up to 15 additional airports nationwide that will help the nation to meet the growing demand for air travel.