PAL posts P8B net income in first 9 months of 2024

Philippine Airlines (PAL) saw lower earnings in the first nine months of 2024, reflecting the flag carrier’s aggressive investments to improve its services and fleet operations.

In a disclosure to the Philippine Stock Exchange on Tuesday, parent PAL Holdings reported that the flag carrier posted a year-to-date net income of P8.075 billion, lower than previous year’s P19.258 billion.

This was on the back of a decline in gross revenues to P132.4 billion from P134.5 billion year-on-year while gross expenses grew to P120.08 billion from P109.7 billion.

“The latest net income report reflects our ongoing focus on investments to ensure higher- level products and services for our customers – building up our fleet, upgrading our cabins, rolling out digital innovations and refining a high-performance culture for our teams,” said PAL president and chief operating officer Stanley Ng.

“As market conditions normalize, we are continuing to see a moderation in growth and a more challenging business environment where rising costs exert greater pressure on the economics of airline operations,” said Ng.

PAL also saw its capital expenditures rise to P15 billion with a substantial portion dedicated to major maintenance requirements of its aircraft and engines and enhancements in the cabin to reinforce operational integrity and ensure a well- differentiated quality service for its customers. 

The capex also includes pre-delivery payments for the A350-1000s on order.

PAL has so far flown 11.7 million this year, up 6%.

Last month, PAL launched its new Manila-Seattle route on October 2. 

Moreover, in preparation for the holiday season, the airline is resuming its Clark-Siargao flights beginning December 3, its Cebu-Osaka flights on December 22, and introducing the new Manila-Cauayan route starting January 15.—AOL, GMA Integrated News