PAL income skyrockets 257% in H1

  • Philippine Airlines will invest more in aircraft and service enhancements after its first-half 2023 net income skyrockets 257% to a record US$250 million
  • Consolidated revenues for the first half surges 52.44% y-o-y as passenger revenue shoots up 73.28%, mainly due to passenger volume soaring 88.80% to 7 million
  • Cargo revenue drops 54% y-o-y as many cargo charter flights are discontinued in favor of additional passenger flights to meet surging demand
  • Fleet investments will include acquisition of nine Airbus A350-1000 long-range aircraft valued at more than $3.2 billion (P176.6 billion)

Philippine Airlines’ (PAL) net income skyrocketed 257% in the first half of the year to US$250 million (P13.6 billion) from $70 million (P4.1 billion) in the same period last year.

With the record net income, the carrier said it will deepen its investment in fleet expansion and service enhancement.

Consolidated revenues for the first six months of 2023 increased to P87.45 billion, 52.44% higher than the total of P57.37 billion PAL generated for the same period last year, as passenger revenue rose significantly by 73.28% mainly on an 88.80% upsurge in passenger volume to 7 million.

Passenger load factor also improved from 66.69% as of June 2022 to 81.58% as of June 2023.

PAL operated 56% more flights to over 50,400 in the first half of 2023.

On the cargo side, revenue dropped 54% year-on-year as many cargo charter flights were discontinued to give way to more passenger flights to meet the surge in demand.

For the second quarter alone, PAL reported net income of $141 million (P8.1 billion), almost tripling the $47.9 million (P3 billion) income it registered in the same quarter last year. Revenues grew 27% to $820 million (P45.6 billion), largely due to higher passenger numbers.

Operating income jumped 95% to $179 million (P10 billion) versus the $92 million (P4.8 billion) in the second quarter of 2022.

PAL said its fleet investments include the purchase of nine Airbus A350-1000 long-range jetliners, valued at more than $3.2 billion (P176.6 billion), based on the list price of $366.5 million per aircraft.

PAL is also increasing customer care and contact center agents, and rolling 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,” PAL president and chief operating officer Stanley Ng said in a statement.

“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,” Ng added.

Lucio Tan III, president and chief operating officer of PAL parent firm PAL Holdings Inc., said: “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 in order to grow amid a more competitive and challenging aviation industry.”

In the first half of 2023, PAL restored flights on several routes to China and launched nonstop services to Perth along with flights from Clark to Caticlan and Boracay.

In addition to its network of 32 domestic destinations served from hubs in Manila, Cebu, Clark and Davao, the flag carrier also operates the largest network of nonstop flights between the Philippines and North America, Japan, the Middle East and Australia.

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