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Philippine Airlines closed 2024 with a total comprehensive income of P10.01 billion, down 51.1% from the record high income of P20.48 billion in 2023
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Consolidated revenues reached P178.01 billion, slipping 0.6% from P179.12 billion in 2023
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Passenger load factor dropped to 79.1% from 80.8% even as passenger volume grew 6.4% to 15.6 million from 14.7 million
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Revenue from cargoes rose 15.3% to P9.16 billion, driven by higher volumes
Philippine Airlines (PAL) closed 2024 with a total comprehensive income of P10.01 billion, down 51.1% from the record high income of P20.48 billion in 2023.
Consolidated revenues reached P178.01 billion, slipping 0.6% from P179.12 billion in 2023. Passenger load factor dropped to 79.1% from 80.8% even as passenger volume grew 6.4% to 15.6 million from 14.7 million, PAL said in a regulatory disclosure.
Passenger revenue, which accounted for the bulk of total revenues, fell 2.9% to P154.945 million.
Revenue from cargoes, on the other hand, rose 15.3% to P9.16 billion, driven by higher volumes handled.
Ancillary revenues likewise improved 19.7% to P13.82 billion, mainly due to higher volumes of seat upgrades and baggage ancillary fees.
Other revenues soared 66.7% to P0.81 million as a result of lease income generated from aircraft operating lease arrangements with an entity under common control.
Still, PAL achieved a 5% net margin that outpaced the global airline industry average of 3% as tracked by the International Air Transport Association, the flag carrier said in a statement.
“We are very pleased with the solid financial performance achieved by the Philippine Airlines team, an outcome of greater operational efficiency, improved schedule reliability, and more consistent service across our global network,” PAL president and chief operating officer Stanley K. Ng said.
In 2024, Ng said 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 scores, which rose to 73%, and net promoter scores, which reached +43, both ranking among the strongest results we’ve delivered to date,” Ng added.
PAL mounted a total of 110,867 flights systemwide, a 5% increase from the 105,294 flights operated in 2023. The expansion of PAL’s network included the launching of Manila-Seattle nonstop flights in October 2024, PAL’s first new US route in nine years, along with progressive increases in frequencies on various international and domestic routes.
PAL said the incremental growth in passenger carriages and solid financial performance came despite a general moderation of growth rates, inflationary strains and increased competition that put pressure on yields.
Consolidated operating expenses increased by 5.9% to P160.04 billion due to the increase in the number of flights operated.
PAL incurred capital expenditures of $387.7 million in 2024 largely for the purchase of its new aircraft and aircraft maintenance.
The airline is also embarking on a number of digital transformation projects such as the implementation of a SalesForce Customer Relationship Management platform, RAMCO Maintenance Information System, and SAP’s S4Hana Enterprise Resource Planning system. This ongoing digital transformation is a key strategy for PAL to deliver personalized digital experiences across the customer journey, the airline said.
“PAL’s financial discipline is critical in a very cyclical industry. Enabled by the gains we have made post-restructuring, we are making purposeful investments to improve our product and update our systems with the aim of delivering better service to our passengers more efficiently,” said Anna Bengzon, PAL chief financial officer.
As a result of the continued strong results of PAL, the airline reported positive retained earnings of $29.2 million (P9.11 billion) as at December 31, 2024 from a deficit of $116.4 million in 2023. PAL also paid down debt and long-term obligations totaling $538.1 million, allowing its total long-term obligations to decrease to $1.39 billion.
The flag carrier is gearing up for the planned delivery of nine Airbus A350-1000 long-range aircraft and 13 A321neo regional aircraft in coming years. Additionally, efforts are underway to reconfigure the A321ceo cabins and enhance WiFi and in-flight entertainment systems.
