Philippine Airlines said Monday a strong recovery in the travel and tourism industry drove its net income last year to a record USD379 million, a 92 percent increase from the USD197 million posted in 2022. This is the highest net profit for PAL, excluding restructuring gains.
PAL, as the Philippine flag carrier is better known, said it mounted 36 percent more flights last year at 105,294 and flew 58 percent more passengers to 14.7 million.
“With the continued recovery of air travel post-pandemic, PAL recorded a 37 percent surge in passenger revenues from USD2.1 billion in 2022 to USD2.9 billion in 2023,” the airline said.
Total net revenues, including cargo and ancillary revenues, grew by 27 percent to USD3.2 billion.
Total operating expenses rose by 21 percent to USD2.7 billion due mainly to increased numbers of flights. Fuel remains the largest cost of PAL, representing 31 percent of revenues, after increasing 8 percent to USD1 billion, with increased consumption tempered by a decline in jet fuel prices.
Operating income grew by 69 percent to USD501M.
Lucio Tan III, president and chief operating officer of PAL Holdings, lauded “the strategic approach of the PAL management team in navigating industry challenges.”
Captain Stanley Ng, president and COO of PAL, said that to preserve the gains realized in 2023, the airline will continue with its corporate transformation which will include fleet modernization and product innovation.
“We are taking in new aircraft, retrofitting cabins of current aircraft, upgrading airport lounges and introducing more product innovations to address our strategic, financial and operational needs across all areas of our operations. Our focus is set firmly on taking care of our customers. We will work collaboratively with government authorities and our service partners to build up our network and take the nation’s flag carrier to new heights in the coming years,” Ng said.
PAL plans to capitalize on the increased resources to strengthen its global and local network, upgrade its aircraft fleet and introduce new and improved products and services in the coming years.
