PAL Holdings Inc. says its top line climbed by 4 percent to P90.92 billion in the first half of 2024, thanks to passenger revenues improving by 2 percent to P79.84 billion. It said passenger volume rose by 13 percent to 7.9 million amid the sustained demand for travel here and abroad.| PHOTO: Official website of Philippine Airlines
Updated on August 10, 2024 at 4:09 p.m.
PAL Holdings Inc. reported on Friday that its revenues climbed by 4 percent to P90.92 billion in the first half of 2024 due to passenger and cargo volumes.
This, as passenger volume rose by 13 percent to 7.9 million amid the sustained demand for travel here and abroad.
READ: Philippine Airlines’ profit descends despite higher top line
However, the company’s costs to service flights increased by 13 percent to P42.91 billion. Total expenses were up 15 percent to P80.29 billion.
Thus, its bottom line fell by 45 percent as total expenses, including those related to flying operations, soared during the period.
The net income attributable to parent company dropped to P5.97 billion in the first semester from P10.89 billion in the same period a year ago.
PAL’s capital expenditures
The flag carrier also spent $157 million for aircraft purchases, maintenance, and cabin upgrades.
“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 PAL Holdings president and chief operating officer Lucio C. Tan III.
READ: PAL readies $450-M war chest for expansion this year
The airline budgeted $450 million this year for its capital expenditures, allocating 80 percent of the funding for the refurbishment of A321ceo units, maintenance and upgrades of other jets and payments for new aircraft orders.
PAL is expecting delivery of 13 Airbus 321-231 neo (new engine option) aircraft between 2026 and 2029. It is also set to receive nine Airbus A350-1000 jets between 2025 and 2027.
‘Disciplined investment plan’
“As the industry adjusts to a rebalancing between demand and capacity, and continues to face cost and supply chain 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,” PAL president Stanley Ng added.
PAL announced earlier this year the launch of its direct flights between Manila and Seattle by Oct. 2. This route will be offered thrice weekly.
In addition, the company is looking into reviving old routes, including Cebu-Osaka and Manila-Sapporo, this year to service the growing demand for flights to Japan.