PAL Holdings Inc. (PHI) has announced the appointment of Lucio Tan III as President, succeeding his grandfather Dr. Lucio C. Tan, who will continue serving as PHI Chairman and Chief Executive Officer. The younger Tan (also known as LT3) is the son of Lucio “Bong” Tan, Jr., who died in 2019.
In a virtual Annual Stockholders Meeting, PHI revealed a significant turnaround in its financial performance. Following the successful implementation of Philippine Airlines’ (PAL) financial restructuring plan and the gradual reopening of travel borders, PHI recorded a consolidated operating income of PHP17 billion in 2022, rebounding from a PHP4 billion operating loss in 2021.
“As the newly designated President of PAL Holdings, I am committed to providing stability and upholding the highest level of integrity within the company. I look forward to working closely with the PAL team, under the leadership of its President and COO, Capt. Stanley Ng, to ensure a collaborative and cohesive approach in serving the best interests of our customers. We also aim to safeguard our shareholders’ investments by fostering a culture of transparency, accountability, and long-term value creation,” according to the newly appointed PHI President.
The remarkable improvement in PHI’s fortunes can be attributed to increased demand for air travel and PAL’s strategic measures. Consolidated revenues surged by 137%, reaching PHP139 billion in 2022, compared to PHP59 billion the previous year. Additionally, the number of passengers soared by 214%, with 9.31 million passengers in 2022 compared to 2.97 million in 2021.
PAL has successfully launched new routes, including the nonstop Manila-Perth service, and re-established connections between the Philippines and mainland China. As the sole airline offering nonstop flights from the Philippines to the United States and Canada, PAL boasts the most extensive network connecting Manila to various cities in the Middle East, Japan, and Australia. Furthermore, PAL’s domestic operations are anchored by its gateway hubs in Manila, Cebu, and Davao.
“I am grateful to our shareholders, our customers, the flying public, for their trust and support. We face major challenges just the same. We need to rebuild our product and our fleet. Philippine Airlines needs to be a stronger competitor and a leader in service and innovation,” said Chairman Tan.
PHI serves as the parent company of PAL and Air Philippines Corporation, and it holds membership in the Lucio Tan Group of Companies.