PAL income jumps more than 300% as air travel recovery continues

• Philippine Airlines reported a total comprehensive income of US$108.2 million (P5.9 billion) in the first quarter of 2023, a 378.8% surge from the $22.6 million (P1.2 billion) earned in the same period last year

• Operating income for January-March 2023 amounted to $135.2 million (P7.4 billion), up 300% from $33.8 million (P1.7 billion) a year ago

• PAL said the positive financial performance reflects the continuing strength of the recovery of air travel after the COVID-19 pandemic

• PAL passenger traffic increased 156.2% year-on-year to 3.4 million in the first quarter

• PAL is acquiring nine Airbus A350-1000 long-haul jetliners to operate nonstop flights to the US and Canada, and potentially to Europe

Flag carrier Philippine Airlines (PAL) reported a total comprehensive income of US$108.2 million (P5.9 billion) in the first quarter of 2023, a 378.8% surge from the $22.6 million (P1.2 billion) earned in the same period last year.

Operating income for January-March 2023 amounted to $135.2 million (P7.4 billion), up 300% from the $33.8 million (P1.7 billion) logged in the first quarter of 2022, the flag carrier said in a statement.

PAL said the positive financial performance reflects the continuing strength of the recovery of air travel after the COVID-19 pandemic.

During the first quarter of the year, PAL re-introduced routes to several cities in mainland China and launched nonstop flights to Perth, while maintaining regular services to North America, the Middle East, Australia, and various destinations around Asia and the Philippines.

PAL generated $776.9 million (P42.6 billion) in revenues for first quarter 2023, a 66.5% improvement from the $466.6 million in the same period last year, driven by a 156.2% year-on-year increase in the number of passengers to 3.4 million in the first quarter.

Operating expenses increased by 48.3% to $641.7 million (P35.2 billion) versus the $ 432.8 million incurred in the first quarter of 2022 as operated flights increased amid higher fuel prices.

“The stronger recovery brings transition challenges that impact our operations, and we commit to make productive use of our improving revenues to invest in fleet upgrades, product improvements, operational support and above all safety,” PAL president and chief operating officer Stanley K. Ng said.

PAL signed a memorandum of understanding to acquire nine Airbus A350-1000 long-haul jetliners, the largest version of the A350 family of high-performance aircraft, to operate nonstop flights to the US and Canada, and potentially to Europe.

Ng said: “We are acquiring additional aircraft so that we can serve our flying public better. For the long-term, we are ordering new long-range Airbus A350-1000 aircraft to operate our transpacific routes, offering our passengers a premium travel experience on the newest-generation aircraft to fly the Philippine skies.”

PAL is currently the only airline operating nonstop services between the Philippines and North America, along with the largest network of flights and routes from the Philippines to Japan, the Middle East and Australia.