Philippine flag carrier Philippine Airlines (PAL) reported a net income of $137 million in the first half of the year, up 12 percent from a year ago, supported by strong passenger volumes and improved operational efficiency.
In a stock exchange report on Thursday, PAL, the oldest commercial airline in Asia still operating under its original name, said operating income for the January to June period reached $146 million.
The airline operated 57,598 flights and flew 8.47 million passengers in the first six months, increasing by 2 percent and 7 percent, respectively, from the previous year.
Committed
“As we pursue strong financial results, we remain committed to earning the trust of our valued customers through excellence, service quality, and true Filipino hospitality on every PAL journey,” said Richard Nuttall, president of Philippine Airlines.
“To sustain our momentum in this dynamic operating environment, we will continue to focus on generating healthy revenues, maintaining financial discipline, sustaining operational integrity, and providing the kind of exemplary travel experience that our customers deserve.”
For the second quarter alone, PAL posted a net income of USD 60 million, up 48 percent year-on-year, and generated $831 million in total revenues, or a 6 percent increase. Operating income for the quarter stood at $71 million, up 10 percent from the same period in 2024.
The airline carried 4.4 million passengers from April to June, a 9 percent increase, while cargo revenues rose by $2 million as it transported 51,200 tons of cargo — 13 percent higher year-on-year. It also operated 29,584 flights, up 5 percent.
Operating expenses for the quarter climbed 5 percent to $761 million due to higher airport and rental charges, third-party contract costs, and depreciation. However, this was partly offset by an 11 percent drop in fuel expenses following lower global fuel prices.
New aircraft
To support future growth, PAL is preparing to introduce 22 new aircraft, starting with its first Airbus A350-1000 before the end of 2025. Eight more A350-1000s and 13 A321neo aircraft are scheduled for delivery from 2026 onward.
The airline is also expecting the first of 18 retrofitted Airbus A321ceo jets with upgraded cabins, in-flight entertainment systems, and WiFi connectivity in October.