Philippine Airlines (PAL) on Thursday reported comprehensive income dropping 25 percent to USD81 million in the first three months this year from USD108.2 million in the same period in 2023.
The Lucio Tan-led airline said the drop in comprehensive income was expected as global travel patterns normalize following the post-pandemic surge of 2023.
PAL’s operating income amounted to $118.4 million, 12 percent lower year-on-year, due to an increase in operating expenses resulting from the 13 percent increase in flights as well as the continued industry-wide price hike on services covering maintenance, ground handling, airport and passenger service charges.
PAL’s consolidated revenue grew by 6 percent to $826 million in the quarter ended 31 March 2024, driven mainly by a 13.6 percent increase in passenger volume.
Passenger revenue in the first three months this year grew by 5 percent to USD720.9 million compared with USD686.2 million in the same period last year.
“Our positive bottom line confirms that we are on track with our growth strategies in the areas of fleet growth, route network expansion and service innovations. We are particularly pleased with the strong reception that the Manila-Seattle route has been getting since our announcement last month.”
Stanley K. Ng, PAL president and chief operating officer
Cargo revenue amounted to USD34.4 million, a 4 percent decrease despite the 21 percent growth in cargo volume compared to the same period last year.
“Our positive bottom line confirms that we are on track with our growth strategies in the areas of fleet growth, route network expansion and service innovations. We are particularly pleased with the strong reception that the Manila-Seattle route has been getting since our announcement last month,” Stanley K. Ng, PAL president and chief operating officer, said.
“However, supply chain issues remain and continue to put a strain on our operations, but we are determined to address these challenges,” Ng quickly added.
Capital expenditures this quarter total USD73 million for the pre-delivery payments on the Airbus A350-1000s on order and other aircraft-related requirements.
PAL is reintroducing flights between Clark and Basco, Batanes beginning July this year, in line with the move to reopen more routes out of Clark and grow its network from Central Luzon.
In October, the flag carrier will be the first carrier to link the Philippines and the U.S. Pacific Northwest with nonstop flights between Manila and Seattle. Seattle will be PAL’s sixth destination in the U.S. and the eighth in North America.
PAL now operates the largest network of nonstop flights between the Philippines and the United States, serving Los Angeles, San Francisco, New York, Seattle, Honolulu and Guam.
