PAL Q1 income down 25% to $81M

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PAL Boeing 777-300ER. Photo from PAL's website.
  • Philippine Airlines reported a comprehensive net income of $81 million in the first quarter of 2024, down 25% year-on-year as global travel patterns normalize following the post-pandemic surge of 2023
  • Passenger revenues grew by 5% to $720.9 million while cargo revenue was down 4% to $34.4 million despite a 21% growth in volume
  • Capital expenditures reached $73 million for the pre-delivery payments on Airbus A350-1000s on order and other aircraft-related requirements

Philippine Airlines (PAL) reported a comprehensive net income of $81 million in the first quarter of 2024, down 25% year-on-year as expected as global travel patterns normalize following the post-pandemic surge of 2023.

PAL in a statement said its operating income of $118.4 million in the first quarter of the year was also 12% lower year-on-year due to an increase in operating expenses as a result of the 13% increase in flights, as well as the continued industry-wide price hike on services covering maintenance, ground handling, airport and passenger service charges.

The flag carrier’s consolidated revenues grew by 6% to $826 million for the first quarter, mainly driven by a 13.6% increase in passenger volume.

Passenger revenues in the first three months of the year grew by 5% to $720.9 million compared with $686.2 million for the same period last year.

Cargo revenues reached $34.4 million, a 4% decrease despite posting a 21% growth in cargo volume.

First-quarter capital expenditures reached $73 million for the pre-delivery payments on the Airbus A350-1000s on order and other aircraft-related requirements.

“Our positive bottom line confirms that we are on track with our growth strategies, in the areas of fleet growth, route network expansion and service innovations,” PAL president and chief operating officer Stanley Ng said.

“We are particularly pleased with the strong reception that the Manila-Seattle route has been getting since our announcement last month,” he added.

Ng, however, said “supply chain issues remain and continue to put a strain on our operations, but we are determined to address these challenges.”

PAL is scheduled to reintroduce flights between Clark and Basco, Batanes beginning July this year, in line with its move to reopen more routes out of Clark and grow its network from Central Luzon.

The airline earlier announced it will launch nonstop flights between Manila and Seattle starting October 2, 2024, its eighth destination in North America.

PAL said it now operates the largest network of nonstop flights between the Philippines and the US, serving Los Angeles, San Francisco, New York, Seattle, Honolulu and Guam.

For this year, the airline has set approximately $450 million for capital expenditure, the bulk of which will be used for aircraft refurbishment and acquisition.

READ: PAL 2023 income soars to P21B, highest in history