PAL profit climbs 6% on travel surge
Text size
Malacañang questioned what will happen to the evidence gathered by the House prosecution panel on the alleged bribery…
Singapore penalizes bad public behavior. Transport authorities in the island state announced last month that public bus…
Authorities arrested 244 foreign nationals, mostly Chinese, during simultaneous operations against suspected illegal…
The Senate impeachment court’s decision to deny former Senator Antonio Trillanes a subpoena was a consensus reached by…
Despite turbulence in the global aviation market, flag-carrier Philippine Airlines (PAL) soared past expectations, posting a net income of $160.4 million—up 6.1 percent from $151.1 million in 2024.
In its Tuesday report, the Lucio Tan-led airline said total revenues climbed to $3.22 billion, a 3 percent increase from $3.13 billion the previous year, buoyed by a strong rebound in passenger travel and smart, forward-looking investments in fleet expansion and operational upgrades.
“Our 2025 results validate PAL’s successful transition from post-pandemic recovery to sustainable, long-term growth," PAL President Richard Nuttall said.
"Despite an industry-wide softening of passenger yields, we successfully defended our top line through disciplined revenue and network management.”
Passenger traffic remained the engine of growth, with PAL carrying 16.3 million travelers, a 4.3 percent increase from 2024.
Passenger revenues climbed to $2.73 billion, supported by a 3.3 percent expansion in capacity.
While the passenger load factor dipped slightly to 78.7 percent from 79.1 percent, ancillary services soared—seat upgrades and other add-ons pushed revenues up 24.9 percent to $301.2 million, now representing 9.4 percent of total revenue.
Cargo operations also contributed to the growth story. Revenue rose 3.7 percent to $165 million, supported by a 1.8 percent increase in volume to 187.5 million kilograms, accounting for 5.2 percent of total revenues.
PAL’s operating costs rose 6.3 percent to nearly $3 billion, reflecting more flights, higher maintenance, and structural cost increases in Manila.
Yet the airline posted $228 million in operating income, yielding a 7 percent operating margin, and generated $645.8 million in cash from operations. Investments in fleet upgrades and maintenance totaled $447.5 million.
Last year, PAL retrofitted three A321ceos, added two A320‑200s, and took delivery of its first Airbus A350‑1000, becoming the first Southeast Asian carrier to operate the next-generation widebody.
The new aircraft expands capacity, improves the passenger experience, and supports network growth in 2026.
At the same time, the airline said it will continue to manage costs by boosting internal efficiencies while investing in its On-Time Performance to ensure reliable service and maintain its signature standards.
