The Philippines and Australia have signed a new air agreement that further boost flights between the two countries, the government said Friday.

The pact was signed in Canberra on Wednesday, according to the Philippines' Civil Aeronautics Board.

Under the agreement, the seat entitlements for each country were increased by 55 per cent to 9,300 seats per week from the current 6,000 seats per week, dpa quoted the board as saying.

The agreement also enables local carriers to operate code-sharing flights with a third country to, from or via the other country to improve market distribution, it added.