PAL reports operating income of $297M in 2022

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  • Philippine Airlines reported an operating income of US$297.2 million in 2022, its first positive full-year operating income since 2019
  • Total comprehensive income amounted to $196.9 million in 2022 as consolidated revenues soared 112%
  • The airline attributed its positive performance to rising demand in air travel following easing of travel restrictions and reopening of borders in most countries
  • Average passenger load factor in 2022 was 72% from 42.6% in 2021
  • PAL flew 214% more passengers in 2022 at 9.3 million passengers

Philippine Airlines (PAL) reported an operating income of US$297.2 million in 2022, its first positive full-year operating income since 2019.

Total comprehensive income amounted to $196.9 million last year as consolidated revenues soared by 112% to $2.57 billion in 2022 from $1.21 billion year-on-year, the flag carrier said in a statement.

The airline also registered a positive financial performance in 2021 after year-on-year losses since 2016. It posted total comprehensive income of $1.21 billion in 2021, which included a $1.44 billion net gain from debt restructuring.

The airline, however, saw an operating loss of $98.1 million in 2021, which reflected the severe pandemic-era travel restrictions and operating conditions prevailing that year.

PAL noted its positive performance was consistent for all four quarters of 2022 and was largely a result of rising demand in air travel that followed the easing of travel restrictions and the reopening of borders in most countries.

“We are very grateful for the support of our customers that has enabled us to achieve this positive result amidst a challenging year,’ PAL president and chief operating officer Stanley K. Ng said.

“Philippine Airlines continues to be on a journey of recovery and renewal, and we will make good use of our resources to improve our services for the benefit of our valued customers. We are even more determined to upgrade our fleet, build more connections to key markets and offer improved products and services,” Ng added.

PAL flights achieved an average passenger load factor of 72% for 2022, nearly 30 percentage points higher than the previous year’s 42.6% load factor.

The flag carrier flew a total of 9.3 million passengers in 2022, comprising the operations of both the PAL mainline network as well as PAL Express. This represents an increase of 214% from the 2021 carriage level.

Total operating expenses for 2022 amounted to $2.27 billion, an increase of $960.3 million over 2021’s $1.31 billion total, due to the increase in the number of flights operated, coupled with the impact of rising fuel prices in the world market. Jet fuel costs represent the highest expense item for the airline.

The flag carrier continued to expand its route network in 2022, adding flights to most of its overseas destinations in North America, Asia, Australia and the Middle East, while commencing domestic routes such as Cebu-Baguio, Cebu-Borongan and Cotabato-Tawi-Tawi.

For 2023 so far, PAL has inaugurated its Manila-Perth nonstop link while reopening multiple routes between the Philippines and points in mainland China.

In addition to an extensive domestic network anchored on its gateway hubs in Manila, Cebu and Davao, PAL is the only airline operating nonstop flights linking the Philippines to the U.S. and Canada, along with the largest network of flights from Manila to multiple cities in the Middle East, Japan and Australia.

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