Philippine Airlines Inc (PAL) continues to stay profitable, as it reported a net income of US$77 million in the first quarter of this year.
This is the airline’s 14th consecutive positive quarter since the pandemic.
PAL generated US$ 817 million in revenues for the first quarter, reflecting a decline of 1 percent, primarily driven by lower yields as well as a shift in the peak Holy Week travel period from March to April.
Meanwhile, there was a 5 percent increase in passenger carriage compared to where it was in the first quarter of 2024, reporting a total of 4.1 million passengers within three months.
At the same time, PAL Cargo carried 52.6M kgs. of cargo whilst operating more than 28,000 flights across its international and domestic network.
PAL also logged an operating income of US$75 million for the quarter.
Growing stronger
Capacity offerings remained steady for Q1, in the context of a calibrated multi-year expansion program.
PAL launched routes from Manila to Cauayan and from Cebu to Catarman this quarter, and announced new routes from Cebu to Ho Chi Minh, and from Manila to Danang, commencing in May and July, respectively.
Operating expenses for the quarter rose by five percent year-on-year to US$741 million, reflecting higher airport charges, third party contract costs and depreciation, offsetting lower fuel costs.
The quarterly results also included the recognition of credits issued to PAL by a vendor as special support compensation for grounded aircraft that occurred in 2023 and 2024.
Earnings before interest, taxes, depreciation and amortization (EBITDA) were US$175 million, three percent higher than in the fourth quarter of last year, but 11 percent lower than the Q1-2024 level.
EBITDA margins remained healthy at 21 percent.
PAL’s balance sheet continued to strengthen with total long-term obligations decreasing to US$1.37 billion, while total equity improved to US$862 million, driven by the sustained earnings of the Company.
PAL president and chief operating officer Stanley K Ng said: “We are greatly encouraged by the support of our valued customers who choose to fly on Philippine Airlines’ global network, and for whom we are investing in progressive product and service improvements, fleet renewal efforts and digital innovations, with safety and reliability as our topmost concerns.”
On top of positive earnings and leadership movements, PAL along with affiliate carrier PAL Express notched a recent safety milestone by respectively completing their IATA Operational Safety Audit (IOSA) Renewal Risk Based Audit, confirming the PAL Group’s conformance with the highest international aviation safety standards.
PAL completed ten consecutive successful IATA audit renewals since its first IOSA registration in 2006, while PAL Express marked six successful IOSA renewals since its original registration in 2014.
