PAL profit soars above P4 billion in Q1

MANILA, Philippines — Flag carrier Philippine Airlines (PAL) opened the year soaring on cruising altitude, as it booked a profit above P4 billion in the first quarter on stronger passenger and cargo demand.

Based on its financial report, PAL’s parent PAL Holdings Inc. increased its net income by a fifth to P4.33 billion between January and March from P3.6 billion a year ago.

PAL’s revenue grew by three percent to P46.95 billion, as the airline also raised its spending by eight percent to P42.29 billion.

PAL’s passenger revenue inched up to P40.53 billion, from P40.35 billion, as the airline ferried 4.1 million guests in the first quarter, up by five percent from a year ago.

It also grew its cargo revenues by six percent to P2.04 billion, carrying 52.6 million kilos of goods.

The airline believes it would have generated more revenue had the Holy Week been scheduled in March like last year.

Still, PAL’s decision to add more flights was enough to stay in the black, marking 14 quarters in a row of profit since the pandemic.

PAL started flying Manila to Cauayan and Cebu to Catarman in the first quarter, and the airline is adding Cebu to Ho Chi Minh and Manila to Da Nang in May and July, respectively.

PAL is fortifying its balance sheet by decreasing long-term obligations to P78.3 billion and improving its total equity to P49.3 billion on sustained earnings.

PAL president and COO Stanley Ng said the airline is making fresh investments on capacity upgrade and new aircraft to support the demand.

Apart from this, the airline clinched another milestone by completing the operational safety audit of the International Air Transport Association, confirming its adherence to aviation standards. It is the 10th consecutive successful audit renewal for PAL since its registration in 2006.

PAL is headed to a new chapter with the appointment of Richard Nuttall as its new president to replace Ng, effective May 29. Nuttall served as CEO of flag carrier SriLankan Airlines, which he helped recover to profitability in 2023.

Ng, for his part, is promoted to PAL’s parent as vice president and one of its directors, where he will craft strategies for the airline’s growth.

PAL is aiming to expand passenger traffic by up to 20 percent to nearly 19 million this year, as it retrieves more grounded aircraft and explores new routes overseas.