PAL returns to profit in Q1

MANILA, Philippines — Flag carrier Philippine Airlines (PAL)  registered its first positive first quarter results since 2016, posting a net income of $22.6 million (P1.2 billion)  during the three-month period ending March.

PAL, in a statement, said it has now achieved positive income results for a full six-month period, after recording a net income of $42 million in the fourth quarter of 2021, with an EBITDA of $145 million.

“This is a significant development that marks PAL’s return to profitability,” the airline said.

The airline also registered an operating income of $33.8 million ( P1.7 billion) during the first quarter, a turnaround from the $106.5 million operating loss recorded in the same period last year.

Revenues of PAL during the first quarter reached $467 million ( P24 billion), driven by a 201 percent jump in passenger revenues and a 72 percent growth in cargo revenues.

PAL said the rise in revenues reflect a stronger recovery in travel volumes as borders reopened in the Philippines and other key markets in Asia, Australia and North America.

The cargo sector, on the other hand, continued its strong performance.

PAL saw operating expenses increase by 50 percent to $433 million (P22.3 billion) during the quarter due to the significant rise in fuel prices along with the increase in the number of operated flights.

“We welcome the financial turnaround demonstrated by the positive operating results for the first quarter of 2022,” PAL president and chief operating officer Stanley Ng said.

“Just the same, we must not lose sight of the considerable headwinds we continue to face, brought about by rising fuel prices, the economic fallout from geopolitical events such as the conflict in Ukraine, and the incomplete recovery in travel markets, as certain Asian regions have yet to fully open their borders. To protect the gains we’ve made so far, we must be resolute in exercising fiscal discipline and faithfully carrying out our restructuring initiatives,” he said.

With $505 million in fresh capital from its shareholder family, PAL is embarking on a major network re-expansion to restore more flights and routes as the Philippines and other countries ease travel restrictions and allow for the continued comeback of leisure and business travel.

PAL expects to return to pre-pandemic levels in its domestic network within the second or third quarter, while continually adding flights on key international routes to the US, Canada and parts of the Middle East and Asia.