Philippine Airlines, Inc. (PAL) announced a 4.9 percent decline in its net income for the first quarter of 2025, primarily attributed to lower sales and increased operating expenses. Despite this dip, the airline continues its positive financial momentum, marking its 14th consecutive quarter of profitability since the pandemic’s onset.
PAL revenue for the quarter totaled $817 million, reflecting a modest 1 percent decrease compared to the same period in 2024. This decline was influenced by reduced yields and the shift of the peak Holy Week traffic period from March 2024 to April 2025. However, PAL’s passenger numbers showed resilience, with a 5 percent increase in passenger carriage to 4.1 million passengers. Its cargo division also performed robustly, handling 52.6 million kilograms of cargo across more than 28,000 flights within its international and domestic network.
Operating income stood at USD75 million, a decrease from the USD118.4 million recorded in 1Q 2024. Meanwhile, operating expenses rose by 5 percent year-on-year to USD741 million, driven by higher airport charges, third-party contract costs, and depreciation. However, this was somewhat offset by lower fuel expenses.
Despite these challenges, PAL remains optimistic about its growth trajectory. The carrier is in the midst of a multi-year expansion program, with new routes launched from Manila to Cauayan and from Cebu to Catarman in Q1. Additionally, PAL is set to introduce routes from Cebu to Ho Chi Minh and from Manila to Danang starting in May and July, respectively.
The airline also highlighted the positive recognition of vendor-issued credits related to grounded aircraft in 2023 and 2024 as part of its quarterly results. These credits have provided special support compensation, cushioning some of the financial pressures during the period.
Captain Stanley K. Ng, PAL president and chief operating officer, emphasized the airline’s continued commitment to customer satisfaction and operational improvements. “We are greatly encouraged by the support of our valued customers who choose to fly on Philippine Airlines’ global network, and for whom we are investing in progressive product and service improvements, fleet renewal efforts, and digital innovations, with safety and reliability as our topmost concerns,” Ng said.
In addition to financial achievements, PAL reached a significant safety milestone with both PAL and its affiliate carrier PAL Express completing their IATA Operational Safety Audit (IOSA) Renewals. This marks PAL’s tenth consecutive successful IOSA audit since its initial registration in 2006, and PAL Express’s sixth successful renewal since 2014, affirming the airline group’s conformance with the highest international aviation safety standards.
As PAL navigates a dynamic market, these results underscore the airline’s resilience and commitment to maintaining its leadership position in the competitive aviation industry.
