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Philippine Airlines posted a 6.1% year-on-year increase in net income to $160.4 million in 2025
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Revenues reached $3.22 billion in 2025, up 3% from $3.13 billion in 2024, supported by solid performance across the airline’s core businesses
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PAL carried 4.3% more passengers to 16.3 million and handled 1.8% more cargo at 187.5 million kg in 2025
Philippine Airlines (PAL) posted a 6.1% year-on-year increase in net income to $160.4 million in 2025.
The flag carrier in a statement said it maintained profitability in 2025 despite a more challenging global aviation environment.
Total revenues reached $3.22 billion in 2025, up 3% from $3.13 billion in 2024, supported by solid performance across the airline’s core businesses.
The passenger business remained the primary revenue driver, generating $2.73 billion, underpinned by sustained travel demand as PAL carried 16.3 million passengers during the year, a 4.3% increase from 2024.
PAL increased its capacity, measured in terms of available seat kilometers, by 3.3% to 46.19 billion in 2025 from 44.74 billion in the previous year.
Passenger load factor was slightly down from 79.1% in 2024 to 78.7% in 2025.
Ancillary revenues likewise rose 24.9% year‑on‑year to $301.2 million mainly due to higher volumes of seat upgrades. Ancillary revenues now represent 9.4% of PAL’s total revenues.
The cargo business posted a 3.7% increase in revenues to $165.0 million in 2025 from $159.7 million in 2024. The growth was driven by a 1.8% increase in cargo volume from 184.1 million kilograms (kg) in 2024 to 187.5 million kg in 2025. Cargo revenues account for 5.2% of the airline’s consolidated revenues.
Total operating expenses increased by 6.3% to almost $3 billion mainly due to the increase in number of flights operated, higher maintenance cost and other structural cost increases which drove up the airline’s cost of operations in Manila.
Income from operations reached $228 million in 2025, reflecting an operating margin of 7%. The company generated cash from operations of $645.8 million and cash flows for investing activities reached $447.5 million, mostly driven by the heavy aircraft maintenance requirements and the ongoing fleet investments to support future growth of the company.
In 2025, PAL continued to advance its fleet revitalization program, retrofitting three Airbus A321ceo aircraft, and taking delivery of two additional A320‑200s to help meet growing domestic travel demand.
On December 21, 2025, the airline marked a significant milestone with the arrival of its first Airbus A350‑1000, making PAL the first carrier in Southeast Asia to operate the next‑generation widebody aircraft.
READ: PAL becomes Southeast Asia’s first A350-1000 operator
PAL said these fleet investments and ongoing cabin reconfigurations reinforce its long‑term growth strategy and position the airline to expand capacity, enhance passenger experience, and support network growth as it enters 2026.
Operationally, PAL said it strengthened its regional standing after being recognized by aviation analytics firm Cirium as the No. 1 most punctual airline in Asia Pacific in 2025, reinforcing the airline’s focus on reliability and operational excellence as demand continued to grow across its network.
“Our 2025 results validate PAL’s successful transition from post-pandemic recovery to sustainable, long-term growth,” PAL president Richard Nuttall said.
“Despite an industry-wide softening of passenger yields, we successfully defended our top line through disciplined revenue and network management,” Nuttall added.
To navigate significant cost pressures, Nuttall said PAL is “aggressively driving internal efficiencies.”
He added: “Simultaneously, we are heavily investing across our end-to-end passenger journey, particularly in continuously improving our On-Time Performance (OTP), to deliver a reliable and seamless customer experience anchored on the world-class service and genuine care that define Philippine Airlines.”
