Airlines

PAL reports positive Q1 2023 financial performance

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(Photo from Philippine Airlines)

Philippine Airlines (PAL) has reported an operating income of PHP 7.4 billion ($135.2m) and total comprehensive income of PHP 5.9 billion ($108.2m) in Q1 2023. This is a significant improvement from the PHP 1.7 billion ($33.8m) operating income recorded during the same period last year.

PAL’s positive financial performance reflects the continuing strength of the recovery of air travel, with a 156.2% increase in the number of passengers carried on PAL’s global network in Q1 2023. 

PAL generated PHP 42.6 billion ($776.9m) in revenues in Q1 2023, a 66.5% improvement from the previous year. This was driven by the addition of new routes to several cities in mainland China and the launch of nonstop flights to Perth, while maintaining regular services to North America, the Middle East, Australia, and various destinations around Asia and the Philippines. 

However, operating expenses for the quarter increased by 48.3% to PHP 35.2 billion ($641.7m), compared to the PHP 24.8 billion incurred in Q1 2022. The rise in expenses reflected an increase in operated flights amid higher fuel prices. 

PAL’s President and Chief Operating Officer, Captain Stanley K. Ng, expressed his gratitude to the airline’s customers for their support during the time of recovery and renewal: “Once again, we thank our valued customers for their support and for the privilege of serving them during this time of recovery and renewal.”

“The stronger recovery brings transition challenges that impact our operations, and we commit to make productive use of our improving revenues to invest in fleet upgrades, product improvements, operational support and above all safety,” Ng added.

To better serve its passengers, PAL signed a memorandum of understanding to acquire nine Airbus A350-1000 long-haul jetliners. The planes will be used to operate nonstop flights to the US and Canada, and potentially to Europe. The airline plans to use the newest-generation aircraft to fly the Philippine skies and offer its passengers a premium travel experience on its transpacific routes. 

PAL is the only airline operating nonstop services between the Philippines and North America, along with the largest network of flights and routes from the Philippines to Japan, the Middle East, and Australia.

Written by
Dirk Andrei Salcedo

Dirk is the founder and editor-in-chief of Aviation Updates Philippines (AUP), a platform dedicated to providing the latest news and insights on the aviation industry in the Philippines. With a strong passion for aviation and a background in computer engineering, he manages all aspects of AUP, from website development to content curation.

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