Philippine Airlines (PAL), the country’s flag carrier, reported a positive first quarter performance for 2024 with a total comprehensive income of $81 million (₱4.6 billion), according to its latest earnings release.
While the net income figure is 25% lower compared to the same period last year, the airline attributed this expected outcome to the normalization of global travel patterns following the post-pandemic surge in 2023.
PAL’s operating income stood at $118.4 million, a 12% year-on-year decrease, due to a 13% increase in flights and industry-wide price hikes on services like maintenance, ground handling, and airport charges.
The airline’s consolidated revenues grew by 6% to $826 million for the quarter ended March 31, 2024, driven by a 13.6% increase in passenger volume. Passenger revenues reached $720.9 million, a 5% increase from the previous year.
Cargo revenues, however, dipped 4% to $34.4 million despite a 21% growth in cargo volume compared to Q1 2023.
“Our positive bottom line confirms that we are on track with our growth strategies, in the areas of fleet growth, route network expansion and service innovations. We are particularly pleased with the strong reception that the Manila-Seattle route has been getting since our announcement last month.”
Capt. Stanley K. Ng, PAL President and Chief Operating Officer
Ng acknowledged ongoing supply chain issues as a challenge but expressed determination to address them.
The carrier’s capital expenditures for the quarter reached $73 million, primarily for pre-delivery payments on ordered Airbus A350-1000s and other aircraft-related requirements.
PAL is set to reintroduce flights between Clark and Basco, Batanes, in July, as part of efforts to grow its network from Central Luzon. In October, it will become the first airline to offer nonstop flights between Manila and Seattle, its sixth U.S. destination and eighth in North America.
The airline currently operates the largest network of nonstop flights between the Philippines and the United States, serving Los Angeles, San Francisco, New York, Seattle, Honolulu, and Guam.
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