PAL profit soared 330% on revenge travel in Q1
IN COMMAND Stanley Ng (left), PAL president and chief operating officer, piloted an aircraft to Perth, the airline’s newest long-haul route, assisted by officer Jose Joel Mira in this March 27, 2023 photo. —CONTRIBUTED PHOTO
MANILA -Brisk demand for air travel allowed the operator of Philippine Airlines (PAL) to jack up its first quarter profit by 330 percent as passenger revenues grew more than twofold.
In its latest financial disclosure, PAL Holdings Inc. reported that its net income attributable to equity holders of the parent company soared to P4.65 billion for the period from P1.08 billion a year ago.
This was supported by total revenues that jumped by 79 percent to P42.21 billion in the first three months from the previous year’s P23.62 billion.
Passenger revenues surged by 119 percent to P37.62 billion in the first quarter. It serviced 3.4 million passengers, showing 156.2-percent growth from the same period last year.
With more travel activities, PAL incurred higher expenses in January to March. Flying operation spending, which comprised the lion’s share of expenses, grew by 61 percent to P19.48 billion.
“The stronger recovery brings transition challenges that impact our operations, and we commit to make productive use of our improving revenues to invest in fleet upgrades, product improvements, operational support and above all, safety,” PAL president and chief operating officer Stanley Ng said.
PAL recently announced its purchase of nine A350-1000 units from Airbus as it seeks to offer nonstop services from Manila to North America. It also secured purchase rights on three additional aircraft of the same kind for future long-haul route expansion plans.
The first unit is expected to be delivered by the fourth quarter of 2025, with the rest slated for receipt until 2027. Currently, the flag carrier operates two A350-900s servicing North America, Asia and Australia.
“For the long-term, we are ordering new long-range Airbus A350-1000 aircraft to operate our transpacific routes, offering our passengers a premium travel experience on the newest-generation aircraft to fly the Philippine skies,” Ng said.
In the first quarter, PAL reopened routes to several destinations in China and launched nonstop flights to Perth, Australia.
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