Philippine Airlines (PAL) posted a comprehensive net income of P9.48 billion in the first half of 2024, noting 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.
Based on the disclosure of its parent company PAL Holdings Inc. to the Philippine Stock Exchange, the airline’s total consolidated revenues grew 4 percent to P90.92 billion in the first semester, driven by sustained growth in passengers, cargo and ancillary services.
“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,” said Lucio K. Tan III, PAL Holdings president and chief operating officer (COO).
Passenger revenues grew by 2.05 percent to P79.84 billion six months into the year from P78.24 billion in the same period last year due to the increase in passenger volume, partially offset by the decrease in average fare per passenger.
PAL reported cargo revenues of P4.12 billion in the first half of the year, higher than last year’s P3.81 billion, due to better cargo volume.
Ancillary revenues jumped 28.56 percent to P6.90 billion, mainly due to a higher volume of ticket rebooking and seat upgrades, PAL added.
Flying operations expenses incurred in the first half of 2024 rose by 13 percent to P42.91 billion, largely due to the 7.10 percent increase in fuel consumption as it operated more flights, the airline said.
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 in the first half of 2023.
The airline said its expansion aligns with an overall growth in air travel, with Manila’s Ninoy Aquino International Airport alone showing a 13 percent growth in passenger volume.
“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,” said Captain Stanley K. Ng, PAL president and COO.
PAL operates the largest network of nonstop flights between the Philippines and the United States, serving Los Angeles, San Francisco, New York, Honolulu and Guam.
Beginning in October this year, Seattle will join the network as PAL’s sixth US destination and the eighth in North America.
