PHILIPPINE Airlines (PAL) expects to remain profitable this year despite tough competition.
The company also sees strong demand for air travel to continue in the fourth quarter of the year.
“We’re still profitable but the margin is so much lower… (there is) pressure with cost, the cost is a little bit higher, and the supply chain issue is also a big problem today. But the remainder of the year, I think, will continue to be better,” Capt. Stanley Ng, PAL president and chief operating office, said Friday at the National Retail Conference and Expo at the SMC Convention Center Manila.
For 2025, Ng remains optimistic but said competition will be tougher.
Ng also hinted issues on supply problems with engine spare aircraft parts as global airlines ramp up capacity.
“I see next year the demand will still be there. However, competition will always be there and even tougher,” Ng said.
“We just have to be creative and differentiate (ourselves) to let the customers see value in our products and services,” he added.
To sustain growth, PAL last week unveiled its lowest fares of the year on selected international and domestic destinations from August 30 to September 20,.
Fares are as low as $50 round trip base fare for international travel, and P209 one-way base fare for domestic travel. Travel period is from August 30, 2024, onwards.
Last week, Mabuhay Miles, PAL’s frequent flyer program, renewed its partnership with SM Advantage Card (SMAC), which started in June 2022.
PAL posted a comprehensive net income of P9.48 billion in the first half of 2024, saying it remains on track toward its transformative growth this year.
PAL said its net income was 30 percent lower than a year ago on the back of higher expenses related to its increasing operations and fleet expansion, even as the market normalizes following the revenge travel surge in 2023.
The airline’s total consolidated revenues grew 4 percent to P90.92 billion in the first semester, driven by sustained growth in passenger, cargo and ancillary services.
