PAL 2023 income soars to P21B, highest in history

• Philippine Airlines recorded a net income of $379 million (P21 billion) in 2023, a 92% increase year-on-year

• The 2023 net income is the highest in its history, excluding any one-off restructuring benefits

• PAL operated 105,294 flights in 2023, a 36% year-on-year growth that enabled it to carry 14.7 million passengers last year

• Revenue from cargoes, however, declined 38% to P7.941 billion from P12.848 billion in 2022

Philippine Airlines (PAL) recorded a net income of $379 million (P21 billion) in 2023, a 92% increase from the $197 million (P11 billion) logged in 2022, as it saw a robust increase in operations and passenger traffic.

The flag carrier said the 2023 net income was the highest in its history, excluding any one-off restructuring benefits.

Consolidated revenues for 2023 amounted to P179.12 billion, 28.64% higher than the P139.24 billion reported in 2022, PAL Holdings, Inc. said in a regulatory disclosure.

The significant increase in revenues was mainly brought about by the significant increase in passenger volume as post-pandemic air travel continued to recover.

The flag carrier in a statement said it operated 105,294 flights in 2023, a 36% growth from the 77,533 flights mounted in 2022. The increase in flight activity enabled PAL to carry 14.7 million passengers in 2023, a 58% uptick from the 9.3 million passengers in 2022.

PAL recorded a 37% surge in passenger revenues to $2.9 billion (P160 billion) from $2.1 billion (P114 billion) in 2022.

Revenue from cargoes, on the other hand, declined 38% to P7.941 billion from P12.848 billion in 2022.

PAL said despite challenging market conditions amidst declining cargo rates globally, PAL Cargo was able to move 179 million kilos of cargo across its domestic and international network within Asia and to North America through the support of its cargo agents and freight forwarders as well as interline partnerships with Globalwind and China Central Airlines, and codeshare partnership with Amerijet.

PAL Cargo led the Philippine domestic market with a share of 46% in 2023 (based on data from the Civil Aeronautics Board), and moving up to Top 2 airline vs Top 4 last year with an international market share ex-Philippines of 12.82%.

Total operating expenses in 2023 rose by 21% to $2.7 billion (P153 billion) from $2.3 billion (P123 billion) in 2022 mainly due to the 36% increase in number of flights operated in the current year. Fuel remains the largest cost of PAL, representing 31% of revenues. Fuel cost increased by 8% year-on-year to $1 billion (P57 billion) due to the increase in flight activity offset by the decrease in jet fuel prices in 2023 versus 2022.

“To preserve the gains we have achieved, we must not rest on our laurels,” PAL president and chief operating officer Stanley K. Ng said.

He added: “PAL’s corporate transformation continues – we are taking in new aircraft, retrofitting cabins of current aircraft, upgrading airport lounges and introducing more product innovations to address our strategic, financial and operational needs across all areas of our operations.”

As of December 2023, PAL’s domestic network operations include 33 cities and towns in the Philippines while its international route network covers 39 cities in 16 countries.

READ: PAL’s net income soars 162% in first 9 months