New jets, cabin upgrade to sustain PAL’s growth

MANILA, Philippines — Flag carrier Philippine Airlines (PAL) is banking on its fleet expansion and in-flight upgrades to do the heavy lifting in sustaining both its financial and operational growth.

At its annual stockholders meeting yesterday, PAL Holdings Inc. chairman Lucio Tan expressed confidence on the airline’s capability to grow even as demand for air travel has begun to normalize.

Tan said PAL is on schedule to receive its initial batch of Airbus A350-1000s toward the end of this year, gearing it up for further expansion in the long-haul segment.

Moreover, PAL is on track to increase its narrowbody fleet through its purchase of 13 A321neos that would start coming in next year. PAL has spent P20.26 billion and P16.54 billion to date for the pre-delivery payments of the A321neos and A350s, respectively.

Tan added the carrier is pushing through with the refurbishment of its A321ceos. Given this, passengers can expect better in-flight entertainment and WiFi when riding these aircraft.

“Alongside these fleet expansion, we are working hard to reconfigure our existing A321ceos to ensure a more comfortable and enjoyable experience for our passengers,” Tan said.

He said PAL is navigating an aviation market that has seen demand normalize from the post-pandemic surge seen in 2023 and 2024.

Tan listed cost spikes and supply issues as some of the risks that PAL may face along the way, but said the airline can overcome these challenges through efforts to expand both fleet and network.

PAL grew its profit by a fifth to P4.33 billion in the first quarter, from P3.6 billion a year ago. As such, the carrier recorded its 14th consecutive quarter in the black, stamping its resilience in the pandemic aftermath.

Likewise, PAL’s passenger volume went up by five percent to 4.1 million, and the airline booked a six-percent growth in cargo revenues to buoy its income. Recently, the airline added Cebu flights to Ho Chi Minh, and is scheduled to mount Manila-Da Nang trips in July.

PAL is also headed to a new chapter in its leadership with the appointment of a new president, Richard Nuttal, who steered flag carrier SriLankan Airlines to profitability in 2023.

PAL also welcomed a new investor in Cayman Islands-based Oasis Investments II Master Fund Ltd., which acquired 1.55 billion shares to own a 5.76-percent stake.