Philippine Airlines (PAL) has unveiled plans to bolster its fleet expansion and elevate its service offerings, following a remarkable surge in net income during the first half of 2023. The airline reported an impressive net income of US$250M (PHP13.6B) and an operating income of US$314M (PHP17.4B) for the initial six (06) months of the year.
PAL’s ambitious investments encompass the acquisition of nine (09) cutting-edge Airbus A350-1000 long-range jetliners, valued at a staggering US$3.2B (PHP176.6B) based on a unit price of US$366.5M per aircraft. The airline is simultaneously enhancing its customer care and contact center staff, while also introducing an innovative customer relations management system set to launch within 2023. This system is expected to deliver personalized self-service solutions for travelers.
“We remain steadfast in our commitment to invest in new aircraft, improved cabins, and enhanced travel experience for our valued customers. 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,” according to PAL President and Chief Operating Officer Capt. Stanley K. Ng.
In the second quarter of 2023, PAL recorded a substantial 27% revenue hike, totaling US$820M (PHP45.6B), primarily attributed to an upswing in passenger numbers. Q2 operating income soared by an impressive 95% to US$179M (PHP10B), up from US$92M (PHP4.8B) during the same period in 2022.
“We are pleased to see that Philippine Airlines is beginning to realize the benefits of the sacrifices we took over the past few years. PAL is on a recovery track and is now in a position to carry out major product and digital transformation initiatives in order to grow amid a more competitive and challenging aviation industry,” said Lucio C. Tan III, President & Chief Operating Officer of PAL Holdings, Inc., the airline’s parent company.
As the second quarter drew to a close, PAL’s net income for Q2 2023 surged to US$141M (PHP8.1B), nearly tripling the US$47.9M (PHP3B) achieved in Q2 of the previous year.
The airline’s first-half performance for 2023 showcased the following key results:
- A notable 89% passenger increase, amounting to 7 million passengers, as well as over 50,400 flights (a 56% increase compared to H1 2022), maintaining an impressive average passenger load factor of 81.6%.
- Passenger revenues reached US$1.4B (PHP78.2B), marking a significant $0.6B (PHP33.1B) rise from the previous year, indicative of recovering demand on both international and domestic routes.
- A 54% decline in cargo revenue due to a strategic pivot towards accommodating elevated passenger demand through additional flights.
- Robust operating income of US$314M (PHP17.4B), substantially surpassing the US$125M (PHP6.6B) recorded in H1 2022.
- Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) reached US$444M (PHP24.2B) for the period, indicating an impressive 82% increase from the prior year’s US$244M (PHP14.4B), and a heightened EBITDA margin of 27.8% (compared to 22% in H1 2022).
- Net income surged to $250M (PHP13.6B) from $70M (PHP4.1B) in H1 2022.
During the initial half of 2023, PAL successfully reinstated flights on various routes to mainland China, introduced nonstop services to Perth, and initiated flights from Clark to Caticlan and Boracay.
PAL, renowned for its extensive network of 32 domestic destinations emanating from hubs in Manila, Cebu, Clark, and Davao, also holds the distinction of operating the most extensive nonstop flight network connecting the Philippines with North America, Japan, the Middle East, and Australia.