Philippine Airlines (PAL) has been doing well since their restructuring, and the changes they made have helped them become profitable. Capt. Stanley Ng, PAL President and COO, is feeling good about where the airline is headed. He’s got plans to offer more services, especially for Filipinos living abroad, and he’s even eyeing some new routes to Europe.
The Financial Upswing
2022 was a year that put smiles on the faces of PAL’s management. The airline reported an operating profit of $298 million. That’s a big deal because it’s the first time they’ve seen positive numbers since 2019. Capt. Ng shared these details at the IATA World Safety & Operations Conference in Hanoi, Vietnam. He said, “Last year was a very good year actually and for this year we’re quite optimistic.”
So, what changed? PAL went through a major restructuring. They cut down on operating costs and restructured a lot of their loans. This has allowed them to offer competitive prices, putting them in a good position against low-cost airlines. Stanley Ng said, “The restructuring did its part to reduce lots of liabilities, and we were able to restructure a lot of loans, which we are still paying today.”
According to a report from FlightGlobal, PAL is also focusing on its employees by linking performance to bonuses. After the strong financial results in 2022, the staff got a nice bonus, boosting morale across the company.
Fleet and Operational Challenges
When it comes to their planes, PAL currently has 76 aircraft in service. But they’ve had some hiccups. Issues with the Pratt & Whitney PW1100 engines have grounded three of their Airbus A321neos. They also operate nine Boeing 777-300ERs, but one will be leaving the fleet by the end of 2023.
PAL has also faced challenges with their widebody planes. They have two A350-900s, but the limited number makes it tough to manage technical issues. They’ve ordered nine A350-1000s set to arrive between 2025 and 2027 to replace the 777s. And there’s talk of more widebody orders, especially for medium-range routes currently served by their 10 A330-300s.
Capt. Stanley Ng mentioned some challenges, like the limited slots at Manila’s Ninoy Aquino International Airport and a shortage of skilled workers. But PAL is working with the government to offer more training opportunities. They’re cautious but optimistic about the future, planning to grow at a manageable pace.
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