Philippine flag-carrier Philippine Airlines (PAL) reported a 62 percent year-over-year increase in its third-quarter net income.
The airline’s total quarterly income of US$22 million reflects the flag carrier’s resilience built atop its ongoing strategic transformation plans.
Total revenue for the three months ended 30th September rose to US$755 million, up three percent.
This was supported by an increase in flight operations and steady passenger volume of 3.8 million.
Passenger revenues rose by one percent to US$632 million while ancillary income jumped 25 percent year-on-year, buoyed by seat upgrades and baggage fees.
Cargo revenues rose by two percent to US$42 million during the quarter, mainly driven by higher volume.
However, operating costs were up two percent, the US$719 million driven by higher airport and third-party contract charges and depreciation.
Earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 28 percent to US$140 million, with margins at 19 percent.
For the first nine months of 2025, PAL reported a net income of US$159 million, up 17 percent from a year earlier.
On the other hand, its capital expenditures rose to US$308 million in the first nine months of 2025 from US$265 million in the same period last year.
Loyalty programmes in Q3
Mabuhay Miles, PAL's loyalty programme, drove significant flight redemptions in August with its iconic Great Mabuhay Miles Getaway promo.
Last 15th October, PAL and Philippine National Bank (PNB) renewed their co-branded PAL Mabuhay Miles PNB Mastercard suite of credit and debit cards.
The PNB–PAL Mabuhay Miles Mastercard remains the only product line in the Philippines offering a complete range of airline co-branded cards, from debit prepaid to World Elite Mastercard.
As of 30th September, active membership of Mabuhay Miles increased by 15 percent from last year.
Exceptional performance
Operationally, PAL strengthened its regional standing, clinching the top on-time performance (OTP) ranking among Asia-Pacific carriers for the third consecutive month according to Cirium data.
The airline also received a four-star major rating from Airline Passenger Experience Association or APEX Four Star, which is an airline rating program based on certified passenger feedback.
Airline president Richard Nuttall declared: “These accolades enhance PAL’s position as the nation’s flag carrier, affirming its reputation for reliability, customer service, and operational excellence. As we move forward with our strategic and long-term initiatives, we remain focused on delivering value to stakeholders, strengthening our financial position, elevating the passenger experience, and ensuring the highest standards of safety in all our operations.”
The carrier’s ongoing fleet modernisation is another cornerstone of its turnaround.
PAL has begun rolling out refurbished A321ceo aircraft fitted with in-flight entertainment screens across all cabins, to be deployed on routes to Tokyo, Osaka, Jakarta, Bali, and Guam by year-end.
