2GO expects steady growth amid fuel cost pressures

By Ashley Erika O. Jose, Reporter

2GO GROUP, Inc. expects to sustain growth this year, supported by steady demand and early bookings, even as rising fuel costs pose challenges to sea travel operations, a company official said.

“We are expecting that this year, it will still be good. Because in terms of the ports we serve, we are seeing that across all ports, the numbers have been steady so far,” 2GO Group Head of Sea Travel Francis John Chua told BusinessWorld on the sidelines of a forum last week.

For the sea travel segment, he said the company expects stable demand from essential travelers, although it may face headwinds as tourists and leisure passengers contend with higher fuel costs.

“For 2GO travel, we are expecting that it will be good in the sense that the market we serve are those who are actually really required to travel — ‘yung mga uwian (those going home). I think our regular passengers actually transit from one place to another,” he said.

The company said passenger numbers across the ports it serves have remained steady so far, despite higher fuel costs that could dampen travel demand.

The Maritime Industry Authority (MARINA) has allowed domestic shipping companies, ship operators, shippers, charterers, and cargo owners to raise their charges by up to 30% from rates published in their certificates of public convenience or franchises, citing global fuel costs and the state of a national energy emergency.

MARINA said the 30% cap on rate adjustments also covers the collection of fuel surcharges of up to 20% of base fares, announced in March.

Mr. Chua said early bookings have helped support passenger volumes, noting that customers who booked ahead were able to manage costs.

“What we are realizing is a lot of passengers we have had actually booked earlier, which is good, they will be able to save,” he said, adding that the peak holiday season in the first quarter also boosted traffic.

Passenger traffic rose by 1.97% to 19.69 million in the first quarter from 19.31 million a year earlier, data from the Philippine Ports Authority showed.

To manage rising costs, 2GO said it continues to monitor and review its routes to optimize destinations while maintaining service levels.

“That is the plan that we are actually doing at the moment, to keep the service and to be able to serve the passengers. We need to be able to be profitable as well,” Mr. Chua said.

MARINA has also authorized shipping companies to adjust operations by consolidating or reducing trips to optimize vessel use and cut fuel consumption, subject to regulatory approval.

At present, 2GO said growth is expected to come from its key routes, including Manila-Cebu, Manila-Bacolod, and Manila-Zamboanga.

The company is also assessing the possibility of launching new routes and reviewing potential fleet expansion.

“We are considering, we are constantly reviewing if there is a market to be served and we want to be able to invest. The management is really optimistic about sea travel,” Mr. Chua said, noting that 2GO currently operates nine ships.

In January, 2GO said it is counting on freight, express delivery, and e-commerce logistics to drive growth this year, as rising online activity boosts demand for faster and more reliable transport services across the Philippines.

2GO Group reported a net income of P1.05 billion for 2025, up 28% from the previous year, as revenue grew 6% to P18.9 billion.

Shipping revenues, which include sea freight and passenger travel, rose 3%, while logistics and other services revenues increased 9%, reflecting stronger non-shipping contributions to the business.

Operating income increased 48% due to cost efficiencies, while earnings before interest, taxes, depreciation, and amortization (EBITDA) reached P2.89 billion at a 15.3% margin.

2GO is an end-to-end transportation, logistics, and distribution provider under SM Investments Corp. (SMIC), which holds a 67.2% effective ownership in the company.