Philippine Airlines (PAL) revealed its financial performance for the first quarter of 2024, reporting a comprehensive income of $81 million. While this represents a 25% decrease from the first quarter of 2023, the results align with expectations as the airline industry sees a normalization of global travel following the heightened demand of the post-pandemic period.
The airline achieved an operating income of $118.4 million, down 12% year-on-year. This decline is attributed primarily to a surge in operating expenses driven by a 13% increase in flights and rising costs for services such as maintenance, ground handling, and various passenger service charges.
Despite these challenges, PAL’s consolidated revenues saw a 6% growth, reaching $826 million. This increase was fueled by a notable 13.6% rise in passenger volume, boosting passenger revenues to $720.9 million in the first three months of the year, up from $686.2 million in the same period last year.
While passenger revenues rose, cargo revenues slightly declined by 4% to $34.4 million, despite a 21% increase in cargo volume compared to the first quarter of 2023. Capital expenditures for the quarter stood at $73 million, allocated mainly for pre-delivery payments on Airbus A350-1000s and other aircraft-related requirements.
Strategic Developments and Future Outlook
Captain Stanley K. Ng, PAL President and Chief Operating Officer, expressed satisfaction with the company’s financial health and strategic direction, particularly highlighting the successful reception of the new Manila-Seattle route announced last month.
“Despite ongoing supply chain issues that continue to pressure our operations, we are steadfast in our commitment to overcoming these challenges,” remarked Captain Ng.
Looking ahead, PAL is set to reintroduce flights between Clark and Basco, Batanes, starting in July 2024, enhancing its offerings from Central Luzon. Additionally, in October, PAL will pioneer direct flights between the Philippines and the U.S. Pacific Northwest with the Manila-Seattle route, marking it as PAL’s sixth destination in the U.S. and the eighth in North America.
Currently, PAL boasts the largest network of nonstop flights between the Philippines and the United States, serving key cities including Los Angeles, San Francisco, New York, Seattle, Honolulu, and Guam. As PAL continues into the remainder of 2024, its strategic initiatives and robust route expansion continue to reinforce its position in the market.
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