Philippine Airlines (PAL) announced a net income of $122 million (₱6.99 billion) for the first half of 2024, with total consolidated revenues reaching $1.6 billion. The flag carrier reported carrying 7.9 million passengers across its international and domestic network, a 13% increase compared to the same period in 2023.
The airline expanded its flights by 11% during this period, aligning with overall growth in air travel. Manila’s Ninoy Aquino International Airport (NAIA) showed a corresponding 13% growth in passenger volume.
PAL Holdings Inc. President and Chief Operating Officer Lucio C. Tan III stated, “Philippine Airlines remains on track in its transformative growth strategy as we deliver a more efficient airline offering quality service, to fulfill our mandate as the Philippines’ flag carrier and only full-service airline with the largest network.”
The company increased its capital expenditures to $157 million, primarily for aircraft purchases, maintenance, and cabin upgrades. PAL’s Mabuhay Miles loyalty program also reached a milestone of six million members.
For the second quarter of 2024, PAL generated revenues of $787 million, a 4% decrease from Q2 2023. The airline attributed this decline to yield pressures resulting from increased market capacity. Operating income for Q2 was reported at $64 million, with a net income of $41 million.
PAL President and Chief Operating Officer Captain Stanley K. Ng commented on the industry challenges, saying, “As the industry adjusts to a re-balancing between demand and capacity, and continues to face cost and supply chain challenges, we are implementing a disciplined investment plan to upgrade our fleet and continue our digital transformation so that we can serve our passengers better.”
According to PAL, it currently operates the largest network of nonstop flights between the Philippines and the United States, serving Los Angeles, San Francisco, New York, Honolulu, and Guam. PAL announced plans to add Seattle as its sixth U.S. destination and eighth in North America, beginning in October 2024.
I hope PAL joins one of the majour airline alliances (SkyTeam, OneWorld, Star Alliance). Mileage earned from PAL long-haul flights are a waste since I can only use them with PAL. Whenever I go home to the Philippines from San Francisco, I always take United Airlines. I was able to use the miles I earned from United for a Lufthansa flight to Frankfurt, Germany.
PAL should study if the spoke-hub model will work for them, particularly when the Bulacan airport is already up and running. PAL can be like th ebigger airlines like ANA, Cathay Pacific, etc. For example, PAL can sell tickets from SFO to BKK, and the Bulacan airport is where passengers going to BKK would change flights.