Philippine Airlines (PAL) announced another year of profitability, confirming positive financial results for 2024 in a recent press release. The flag carrier reported a net income of USD 151.1 million (PHP 10.22 billion).
This marks PAL’s fourth consecutive year of profitable operations. Significantly, the airline achieved a 5% net margin, exceeding the 3% global airline industry average tracked by the International Air Transport Association (IATA).
The fourth quarter of 2024 showed strong momentum, with system-wide revenues rising 8% from the previous quarter to USD 790.2 million. This contributed to PAL’s 13th straight profitable quarter.
Operationally, PAL carried 15.6 million passengers in 2024, a 6% increase from the prior year. The airline operated nearly 111,000 flights (up 5%) across its network covering 68 destinations.
Key network developments included the launch of a new Manila-Seattle route and the revival of services from Cebu to Osaka, and Clark to Basco and Siargao. PAL also took delivery of two Boeing 777-300ER aircraft to support its transpacific operations.
PAL President and COO Captain Stanley K. Ng attributed the success to “greater operational efficiency, improved schedule reliability, and more consistent service.” He noted improved gains on areas crucial for customer experience.
“In 2024, PAL operated 5% more flights while improving on-time-performance by 2% and schedule reliability by 4%. These gains contributed to a significant increase in customer satisfaction (CSAT) scores, which rose to 73%, and net promoter scores (NPS), which reached +43, both ranking among the strongest results we’ve delivered to date,” he added.
While total revenues saw a slight 4% dip to USD 3.13 billion compared to 2023, attributed to market moderation and yield pressures, cargo and ancillary revenues grew significantly by 12% and 16% respectively. Operating expenses increased by 3% due to higher lease and airport costs, though partly offset by lower fuel expenses, which remain the largest cost component (31% of revenues).
The airline demonstrated financial discipline by paying down USD 538.1 million in debt, reducing total long-term obligations to USD 1.39 billion. PAL also reported positive retained earnings of USD 29.2 million, a significant turnaround from a deficit in 2023.
Capital expenditures reached USD 387.7 million, primarily for new aircraft and maintenance, alongside investments in digital transformation projects like new CRM and ERP systems. CFO Anna Bengzon emphasized these “purposeful investments” aim to enhance passenger service.
PAL’s performance earned external recognition, improving to #7 on Cirium’s 2024 list of Most Punctual Airlines in the Asia-Pacific. The airline was also ranked among the Top 10 Travel Brands in Southeast Asia for 2024.
Looking ahead, PAL is preparing for the delivery of nine Airbus A350-1000s and thirteen A321neos. Plans also include reconfiguring A321ceo cabins and enhancing onboard connectivity and entertainment systems.
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