The increased expenses resulting from expanding operations and fleet growth have prompted flag carrier Philippine Airlines (PAL) comprehensive net income to slip by 30 percent to P9.48 billion in the first half of the year from P13.5 billion last year.
In a stock exchange report released on Friday, PAL Holdings, Inc., the parent company of PAL, said it saw a 4 percent growth in total consolidated revenues during the period, amounting to P90.92 billion from P87.4 billion last year.
However, expenses surged to P80.3 billion from P69.8 billion in the first half of 2023. Nonetheless, the company said it remains optimistic despite encountering challenges.
"Philippine Airlines remains on track in its transformative growth strategy as we deliver a more efficient airline offering quality service, to fulfill our mandate as the Philippines’ flag carrier and only full-service airline with the largest network,” PAL Holdings President and Chief Operating Officer Lucio K. Tan III said.
From January to June, PAL expanded flights by 11 percent and carried almost 8 million passengers across its international and domestic network, 13 percent more than the 7 million recorded in the same period last year.
For his part, Captain Stanley K. Ng, PAL President and Chief Operating Officer, said: “As the industry adjusts to a re-balancing between demand and capacity, and continues to face cost challenges, we are implementing a disciplined investment plan to upgrade our fleet and continue our digital transformation so that we can serve our passengers better.”
Amidst a normalizing market environment in contrast to the travel demand surges of 2023, the airline achieved an operating income of P10.6 billion, still aligned with company expectations.
As of the end of June, the company’s capital expenditures clocked in at $157 million, primarily allocated for aircraft purchases, maintenance, and cabin upgrades to provide a better customer experience.