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Philippine Airlines reported a 48% year-on-year increase in net income to $60 million in the second quarter of 2025, primarily driven by higher passenger volumes and marking the carrier’s 15th consecutive profitable quarter
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PAL carried 4.4 million passengers in the second quarter, a 9% increase
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Cargo revenues grew by $2 million as the airline carried 51,200 tons, a 13% increase
Philippine Airlines (PAL) reported a 48% year-on-year increase in net income to $60 million in the second quarter of 2025, primarily driven by higher passenger volumes and marking the carrier’s 15th consecutive profitable quarter.
Revenues for the second quarter reached $831 million, up 6% from the same period last year, while operating income rose to $71 million, a 10% year-on-year improvement, the flag carrier said in a statement.
“As we pursue strong financial results, we remain committed to earning the trust of our valued customers through excellence, service quality, and true Filipino hospitality on every PAL journey,” PAL president Richard Nuttall said.
“To sustain our momentum in this dynamic operating environment, we will continue to focus on generating healthy revenues, maintaining financial discipline, sustaining operational integrity and providing the kind of exemplary travel experience that our customers deserve,” Nutall added.
PAL carried 4.4 million passengers in the second quarter, a 9% increase from last year, although revenue growth was tempered by softening international yields.
Cargo revenues grew by $2 million as the airline carried 51,200 tons, a 13% increase.
Overall, PAL operated 29,584 flights on its international and domestic routes, 5% more than last year.
The airline’s operating expenses for the quarter increased by 5% to $761 million, attributed to higher airport and rental charges, third-party contract costs and depreciation. This was partly offset by an 11% reduction in fuel expense, reflecting lower global fuel prices.
PAL said its balance sheet remained healthy. As of June 2025, the airline reported cash and cash equivalents of $455 million, total assets of $3.8 billion and total liabilities of $2.9 billion.
Cash from operations sufficiently covered its capital expenditures in the first six months amounting to $300 million. PAL’s capex was invested in the pre-delivery payments for aircraft on order and major aircraft maintenance activities.
Total debt and long-term financial obligations were reduced to $1.39 billion from $1.57 billion as of June 30, 2024. Total equity was at $922 million as of June 30, 2025, up from $785 million recorded at the end of 2024.
PAL said its balance sheet and cash flows are geared up to support a calibrated growth plan that will enable the company to deliver sustainable financial results in the years ahead.
The solid second-quarter performance contributed to a net income of $137 million for the first half of 2025, up 12% from last year, and an operating income of $146 million.
PAL operated 57,598 flights and transported 8.47 million passengers in the first six months of 2025, up by 2% and 7% respectively year-on-year.
PAL’s on-time performance also improved to 81.23% systemwide from January to June 2025, versus 78.66% last year, and was honored as the Asia-Pacific region’s most punctual airline in April 2025 after two consecutive years in the top 10 rankings tracked by the international aviation analytics firm Cirium.
The flag carrier said it is now preparing to introduce 22 brand-new aircraft in the coming years, beginning with its first Airbus A350-1000, a 382-seater long-range jetliner that will join the PAL fleet before the end of 2025.
Eight more A350-1000s and 13 A321neo regional aircraft are slated for delivery from 2026 onwards. It also expects delivery of the first of 18 retrofitted Airbus A321ceo aircraft with upgraded cabins, enhanced in-flight entertainment systems and Wi-Fi connectivity in October 2025.
