MANILA, Feb 24 (Reuters) — Manila’s primary international gateway posted a record-breaking surge in passenger traffic in January, surpassing all historical benchmarks and offering early evidence that a private sector–led overhaul of the Philippines’ long-criticized aviation infrastructure is beginning to gain traction.
Ninoy Aquino International Airport handled 4.96 million passengers last month, according to data released by its operator on Monday. The figure eclipsed the previous high of 4.86 million recorded in December, a notable achievement in an industry that typically experiences a slowdown following the peak holiday travel season.
Aviation analysts described the January performance as a strong signal that operational reforms introduced under the airport’s new management are translating into tangible gains. For decades, NAIA has been regarded as one of Southeast Asia’s most congested and delay-prone hubs, drawing criticism from travelers and airlines alike. The latest data suggest that the long-stalled effort to modernize the facility may finally be moving beyond planning into execution.
The turnaround comes just months after a consortium led by San Miguel Corp assumed control of the airport in September under a landmark public-private partnership (PPP) agreement with the Philippine government. The deal, one of the largest infrastructure concessions in the country’s history, placed the rehabilitation and expansion of NAIA in the hands of New NAIA Infra Corp (NNIC), a private operator tasked with transforming the aging complex into a competitive regional hub.
International travel was the principal driver of January’s growth. Passenger volumes on overseas routes reached an all-time high of 2.42 million, an increase of 8.16% compared with the same month a year earlier. Domestic traffic also posted gains, rising 3.16% year on year to 2.54 million passengers, reflecting continued strength in local tourism and business travel.
The airport hit its operational peak on Jan. 4, when it processed 180,089 passengers in a single day. Despite the surge, NNIC reported that operations remained stable, with fewer disruptions than in previous peak periods—a development closely watched by both regulators and airlines.
NNIC attributed the smoother handling of peak traffic to a combination of technological upgrades and tighter coordination among stakeholders. Under the leadership of Ramon Ang, San Miguel’s president and chairman, the consortium has prioritized what it calls “de-bottlenecking” the terminals.
Key measures include the rollout of biometric e-gates for faster immigration clearance, expanded use of automated check-in and baggage systems, and closer integration between ground handlers, airlines, and government agencies such as immigration and customs. Mr. Ang has previously said that these changes are essential to addressing structural inefficiencies that have long plagued the airport.
“Technology alone will not solve everything, but it allows us to remove many of the choke points that slow passengers down,” Mr. Ang said in earlier remarks on the modernization plan. “The goal is to make movement through the airport predictable and efficient.”
Beyond operational improvements, the concession is delivering a significant fiscal boost to the Philippine government. Since the start of the agreement in 2024, NNIC has remitted 62.7 billion pesos ($1.1 billion) to the national treasury under a revenue-sharing arrangement. Finance officials have described the inflows as one of the most lucrative outcomes of a PPP in recent years, providing additional resources for public spending without adding to state debt.
The strong passenger numbers come as the consortium enters a more capital-intensive phase of its redevelopment program. NNIC aims to nearly double NAIA’s annual capacity from 35 million passengers to 62 million, a target it says is necessary to keep pace with the Philippines’ growing travel demand and expanding middle class.
Central to that plan is the construction of a new Terminal 4, scheduled for completion in the first half of 2026. The new facility is expected to ease congestion at existing terminals while providing additional gates and modern passenger amenities. Other planned works include airside upgrades, improved taxiways, and expanded apron space to support higher aircraft movements.
In a controversial but closely watched move, the operator will prohibit turboprop aircraft operations at NAIA starting in March. By limiting runway use to larger commercial jets, management hopes to maximize slot utilization, increase passenger throughput, and reduce what it calls “cascading delays” caused by slower-moving aircraft.
The policy is expected to affect several domestic routes served by turboprops, potentially shifting them to secondary airports around Metro Manila. While some regional carriers have raised concerns about the impact on connectivity, airport officials argue that the change is necessary to optimize runway efficiency at one of the region’s busiest airfields.
Aviation experts say the success of the NAIA overhaul will have implications far beyond Manila. The airport’s performance is widely viewed as a bellwether for the Philippines’ broader push to modernize its logistics and transport infrastructure, an area that has lagged behind regional peers such as Singapore, Thailand, and Vietnam.
Tourism officials, meanwhile, see the improvements as critical to sustaining growth in international arrivals. With visitor numbers rebounding strongly after the pandemic, capacity constraints at NAIA have emerged as a key bottleneck. A more efficient airport, they argue, could strengthen the Philippines’ competitiveness as a destination and support longer-term economic growth.
For now, the January traffic record has given the new operator an early vote of confidence. Whether the gains can be sustained—and translated into a lasting reputational turnaround for one of Asia’s most criticized airports—will depend on the timely delivery of promised expansions and the continued smoothing of day-to-day operations.
If successful, analysts say, NAIA may finally shed its image as a chokepoint in regional and trans-Pacific aviation, signaling that the Philippines’ experiment with private-sector-led infrastructure reform is paying dividends.©kuryentenews