Philippine Airlines (PAL) has celebrated a monumental year in 2023, achieving its most robust financial performance to date. The flag carrier disclosed a net income of US$379 million (PHP21 billion) for 2023, marking an impressive 92% surge from the US$197 million (PHP11 billion) net income recorded in the previous year.
PAL’s exceptional performance was attributed to a substantial increase in operations and passenger traffic, both domestically and internationally.
The airline saw a significant expansion in its flight operations, with 105,294 flights conducted in 2023, reflecting a remarkable 36% growth compared to the 77,533 flights operated in 2022. This increase allowed PAL to transport 14.7 million passengers in 2023, marking a substantial 58% uptick from the 9.3 million passengers carried in the preceding year.
“I express my profound thanks for the support and loyalty of our valued passengers and assure them of our unstinting focus on taking care of them when they fly with us. I laud the strategic approach of the PAL management team in navigating industry challenges. Our greatest resources are our people in the PAL Group who have stood resilient and have adopted a transformation mindset that benefits the company and its customers,” according to PAL Holdings President & Chief Operating Officer Lucio C. Tan III thanking the customers who entrusted their travel journeys to PAL and commended the dedication and commitment of the PAL Group workforce.
As air travel continued its recovery trajectory post-pandemic, PAL experienced a notable 37% surge in passenger revenues, reaching US$2.9 billion (PHP160 billion) in 2023, up from US$2.1 billion (PHP114 billion) in 2022. Total net revenues, inclusive of cargo and ancillary revenues, grew by 27% from US$2.6 billion (PHP139 billion) to US$3.2 billion (PHP181 billion).
However, operating expenses also saw a 21% increase, climbing to US$2.7 billion (PHP153 billion) from US$2.3 billion (PHP123 billion) in 2022, primarily due to the surge in flight operations. Fuel costs remained the largest expense for PAL, constituting 31% of revenues. Despite a decrease in jet fuel prices in 2023 compared to 2022, fuel costs rose by 8% year-on-year to US$1 billion (PHP57 billion) due to increased flight activity.
PAL’s operating income witnessed a substantial 69% growth to US$501 million (PHP28 billion), while earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 43% to US$765 million (PHP43 billion). Operating and EBITDA margins demonstrated significant improvements, reaching 15% and 24%, respectively, underscoring PAL’s enhanced operational scale and efficiency.
“To preserve the gains we have achieved, we must not rest on our laurels. PAL’s corporate transformation continues – we are taking in new aircraft, retrofitting cabins of current aircraft, upgrading airport lounges and introducing more product innovations to address our strategic, financial and operational needs across all areas of our operations. Our focus is set firmly on taking care of our customers. We will work collaboratively with government authorities and our service partners to build up our network and take the nation’s flag carrier to new heights in the coming years,” said PAL President and Chief Operating Officer Captain Stanley K. Ng.
The record-breaking net income of US$379 million stands as the highest in PAL’s history, excluding any one-off restructuring benefits. Looking ahead, PAL aims to leverage its strengthened financial position to bolster its global and domestic network, upgrade its aircraft fleet, and introduce new and enhanced products and services in the forthcoming years.