Flag carrier Philippine Airlines (PAL) reported a record net income of $379 million (PHP 21 billion) for the year 2023, marking its strongest financial performance in history.
The airline’s net income surged by 92% compared to $197 million in 2022, driven by a robust increase in operations and passenger traffic.
PAL operated 105,294 flights in 2023, a 36% increase from the previous year, enabling the carrier to transport 14.7 million passengers, a 58% jump from 2022.
The flag carrier’s passenger revenues grew by 37% to $2.9 billion, while total net revenues, including cargo and ancillary income, rose by 27% to $3.2 billion.
“I express my profound thanks for the support and loyalty of our valued passengers and assure them of our unstinting focus on taking care of them when they fly with us,” said Lucio C. Tan III, President and Chief Operating Officer of PAL Holdings.
Operating expenses increased by 21% to $2.7 billion, primarily due to the increased flight frequency and higher fuel costs, which accounted for 31% of revenues.
However, the airline’s operating income grew by 69% to $501 million, and earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 43% to $765 million, reflecting improved operational efficiency.
“Our focus is set firmly on taking care of our customers. We will work collaboratively with government authorities and our service partners to build up our network and take the nation’s flag carrier to new heights in the coming years,” said Captain Stanley K. Ng, President and Chief Operating Officer of PAL.
In 2023, PAL expanded its network by opening two new routes, Manila-Perth and Cebu-Laoag, and relaunched 13 routes, including services to Beijing, Shanghai, and Macau.
The airline also invested in fleet modernization, purchasing nine Airbus A350-1000 XWB widebody planes valued at over $3.2 billion.
Additionally, PAL constructed two new Mabuhay Lounges in Manila and Cebu and refurbished other lounges across the Philippines.
The record net income of $379 million, excluding any one-off restructuring benefits, positions PAL to further strengthen its global and local network, upgrade its aircraft fleet, and introduce new products and services in the coming years.
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