Philippine Airlines (PAL) is optimistic to sustain its profitability this year with the continued strong market recovery, to be driven by its aggressive route expansion and fleet upgrade.
In a press briefing, Stanley Ng, PAL president and chief operating officer, said the company’s performance in the first quarter has exceeded expectations and this will be sustained in 2023 with the continued travel growth.
“We already have an idea of the first quarter performance. It exceeded our expectations. We are optimistic with the continued growth of travel. We look forward to new places to fly to, continue to activate the fleet on the ground,” Ng said.
PAL has emerged from its voluntary Chapter 11 proceedings in December 2021 as a more efficient airline with a strengthened balance sheet.
PAL posted a P9.68-billion comprehensive income in the first nine months of 2022, a turnaround from the P27.19-billion loss posted in the same period the prior year.
Lucio Tan III, PAL director, said at the company’s 82nd anniversary the airline’s strong recovery will continue this year.
“We are expecting a continuing strong market recovery so there are plans in place to enhance and upgrade our fleet. We’re taking back some of the aircraft we relinquished during the Chapter 11 restructuring,” Tan said.
“We are re-activating more aircraft that we parked during the pandemic, with all of them going back in service between now and the fourth quarter,” Tan added.
PAL is upgrading its wide-body fleet to significantly improve the experience of traveling on long-haul flights.
The airline is reactivating more aircraft that were parked during the pandemic, with its entire fleet of 75 aircraft expected to be operational in the fourth quarter of the year.
PAL has returned to its pre-pandemic domestic operation and expects full recovery, including in its international operation, in the next three to four years, said Ng.
“We have an extensive domestic network connecting the Philippines’ top economic centers in Luzon, Visayas and Mindanao. We are already back to 100 percent of our pre-pandemic domestic flights out of our primary hubs in Manila and Cebu,” Ng said.
He added PAL plans to double its capital expenditure this year, with the lion’s share to be spent for aircraft upgrade and expansion of its Mabuhay Lounge.
PAL said it will open an expansive new Mabuhay Lounge for international departures at the Manila airport’s Terminal 1 later in 2023.
PAL is rolling out new routes and working on fleet expansion, digital innovations, customer service enhancements and a last-mile cargo delivery service, while adopting a younger look and more vibrant feel.
PAL continues to expand its global flight route network with the launch of direct flights to Perth, Australia, the first nonstop flight to link the Philippines with Perth and the Western Australia region, starting on March 27.
