Philippine Airlines (PAL) has closed the first half of 2024 with notable increases in passenger numbers, cargo volume, and ancillary services, leading to total consolidated revenues of $1.6 billion. The flag carrier expanded its flight operations by 11%, resulting in the transportation of 7.9 million passengers across its international and domestic routes, reflecting a 13% increase compared to the same period in 2023. This growth aligns with the overall expansion in air travel, with Manila’s Ninoy Aquino International Airport (NAIA) also reporting a 13% rise in passenger volume during this period.
The airline’s Mabuhay Miles lifestyle program also saw substantial growth, reaching a new milestone of six million members.
Financial Performance and Strategic Investments
PAL reported a net income of $122 million and an operating income of $182 million for the first half of 2024. These results are in line with the airline’s expectations, given the normalization of market conditions compared to the travel demand surges seen in 2023. The airline’s capital expenditures increased to $157 million, primarily allocated for aircraft purchases, maintenance, and cabin upgrades. These investments are part of PAL’s ongoing efforts to reinforce its operational integrity and enhance the quality of service offered to its customers.
“Philippine Airlines remains on track in its transformative growth strategy as we deliver a more efficient airline offering quality service, to fulfill our mandate as the Philippines’ flag carrier and only full-service airline with the largest network,” said Lucio C. Tan III, President and Chief Operating Officer of PAL Holdings Inc.
Second Quarter Results and Market Adjustments
For the second quarter of 2024, PAL generated $787 million in revenues, which is a 4% decrease from the same quarter in 2023. This decline reflects the pressures on yield due to the return of increased market capacity. Despite this, PAL’s operating income for the quarter was reported at $64 million, although it was negatively impacted by higher costs associated with increased flying and maintenance activities. The net income for the second quarter stood at $41 million.
“As the industry adjusts to a re-balancing between demand and capacity, and continues to face cost and supply chain challenges, we are implementing a disciplined investment plan to upgrade our fleet and continue our digital transformation so that we can serve our passengers better,” added Captain Stanley K. Ng, PAL President and Chief Operating Officer.
PAL continues to operate the largest network of nonstop flights between the Philippines and the United States. Currently, PAL serves destinations including Los Angeles, San Francisco, New York, Honolulu, and Guam. In October 2024, Seattle will join the network, becoming PAL’s sixth U.S. destination and the eighth in North America.
First love never dies. I fell in love with airplanes and aviation when I was a kid. My dream was to become a pilot, but destiny led me to another path: to be an aviation digital media content creator and a small business owner. My passion for aviation inspires me to bring you quality content through my website and social accounts. Aviation is indeed in my blood and blog!
