Philippine Airlines (PAL) is flying high with a record net income of US$ 250 Million (PHP 13.6 Billion) and operating income of US$ 314 Million (PHP 17.4 Billion) for the first half of 2023. The airline’s second quarter revenues grew by 27% to US$ 820 Million (PHP 45.6 Billion), largely thanks to more passengers. Operating income for Q2 increased by 95% to US$ 179 Million (PHP 10 Billion), compared to US$92 Million (PHP 4.8 Billion) in Q2 2022. PAL finished the second quarter with a net income of US$ 141 Million (PHP 8.1 Billion), almost tripling the US$ 47.9 Million (PHP 3.0 Billion) income from Q2 last year.
For the full first half of 2023, PAL carried 7 million passengers (an 89% increase vs. H1 2022) and operated over 50,400 flights (56% more than in H1 2022), with an 81.6% average passenger load factor. Passenger revenues rose to US$ 1.4 Billion (PHP78.2 Billion), or $0.6 Billion (PHP 33.1 Billion) higher than 2022. However, cargo revenue dropped 54% versus last year, as many cargo charter flights were discontinued to make way for more passenger flights.
Investing in the Future
PAL is not just celebrating its success; it’s also planning for the future. The airline will deepen its investments in fleet expansion and service enhancements. This includes the purchase of nine (9) Airbus A350-1000 long-range jetliners, valued at more than US$ 3.2 Billion (PHP 176.6 Billion). PAL is also increasing customer care and contact center agents and will roll out a new customer relations management system within 2023 to provide more personalized self-service options for customers.
“We remain steadfast in our commitment to invest in new aircraft, improved cabins, and enhanced travel experience for our valued customers,” said PAL President and Chief Operating Officer Capt. Stanley K. Ng. “The latest positive financial results enable us to build a better, stronger, and more agile Philippine Airlines that creates greater value for our customers, and we are grateful for their continuing support and patronage.”
Recovery on Track
Mr. Lucio C. Tan III, President & Chief Operating Officer of PAL Holdings, Inc., the airline’s parent company, expressed satisfaction with the direction PAL is taking. “We are pleased to see that Philippine Airlines is beginning to realize the benefits of the sacrifices we took over the past few years. PAL is on a recovery track and is now in a position to carry out major product and digital transformation initiatives to grow amid a more competitive and challenging industry,” he said.
New Routes and Expanding Network
In the first half of 2023, PAL restored flights on several routes to mainland China and launched nonstop services to Perth along with flights from Clark to Caticlan and Boracay. With an extensive network to 32 domestic destinations served from hubs in Manila, Cebu, Clark, and Davao, the Philippine flag carrier operates the largest network of nonstop flights between the Philippines and North America, Japan, the Middle East, and Australia.
PAL has plans to resume flights to Europe once the new aircraft are delivered.
PAL’s impressive financial results and ambitious plans for the future are a clear indication of the airline’s commitment to growth and customer satisfaction. By investing in new aircraft, enhancing services, and expanding its network, PAL is positioning itself to be a leading airline in Asia. The future looks bright for Philippine Airlines, and passengers can look forward to even more exciting developments in the coming years.
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