Transport/Comms
Philippine Airlines (PAL) is prepared to spend $3.2 billion to acquire nine brand-new aircraft. This developed in the wake of a 194 percent increase in PAL net income in the second quarter due to higher passenger volume .
The Lucio Tan-led airline posted net income of $141 million in the April to May period, nearly triple the $47.9 million it reported in the same period last year.
In the first six months, PAL reported a net income of $250 million, up 257 percent from only $70 million in the same period last year.
PAL’s 2Q23 revenue grew 27 percent to $820 million as Filipinos and other travelers in large numbers trooped to the airports to fly.
The airline carried seven million passengers during the period, up 80 percent from last year on over 50,400 flights, logging an 81.6 percent average passenger load factor;
“The latest positive financial results enable us to build a better, stronger and more agile Philippine Airlines that creates greater value for our customers, and we are grateful for their continuing support and patronage,” said PAL president and chief operating officer Capt. Stanley K. Ng.
Lucio C. Tan III, president and chief operating officer of PAL Holdings, Inc., the airline’s parent company, said the flag carrier is “on a recovery track.”
According to him, PAL is now in a position to carry out major product and digital transformation initiatives to grow amid a more competitive and challenging aviation industry
PAL said it is investing $3.2 billion for the acquisition of nine Airbus A350-1000 long-range jetliners based on its list price of $366.5 Million per aircraft.
The airline is also increasing its customer care and contact center agents and roll out a new customer relations management system within this year to provide more personalized self-service options for customers.
“We remain steadfast in our commitment to invest in new aircraft, improved cabins, and enhanced travel experience for our valued customers,” Ng said.
In the first half this year, PAL restored flights on several routes to mainland China and launched nonstop services to Perth along with flights from Clark to Caticlan and Boracay.
In addition to an extensive network of 32 domestic destinations served from hubs in Manila, Cebu, Clark and Davao, the flag carrier operates the largest network of nonstop flights between the Philippines and North America, Japan, the Middle East and Australia.
