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Philippine Airlines’ income for the first nine months of the year tumbled 56.54% to P8.61 billion from P19.82 billion recorded year-on-year
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Consolidated revenues also declined 1.58% to P132.45 billion
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Despite the 6.3% increase in passenger volume to 11.71 million, yield per passenger declined by 6.90% due to increased competition
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Revenue from cargo operations grew to P6.47 billion from last year’s P5.71 billion bolstered by higher cargo volume
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For the third quarter alone, PAL achieved a net income of P812 million and an operating income of P1.6 billion, its 11th consecutive quarter of positive financial results since emerging from the pandemic restructuring
Philippine Airlines’ (PAL) total comprehensive income tumbled 56.54% to P8.61 billion in the first nine months of 2024 from P19.82 billion year-on-year.
For January to September 2024, consolidated revenues also dropped 1.58% from last year’s P134.58 billion to P132.45 billion. This is due to lower passenger revenue despite the operation of more flights (7.55% up) and higher passenger volume, the flag carrier said in a regulatory disclosure.
For the third quarter alone, PAL achieved a net income of P812 million and an operating income of P1.6 billion, its 11th consecutive quarter of positive financial results since emerging from the pandemic restructuring.
Passenger revenues for the first nine months of the year dropped 3.68% to P115.66 billion from P120.08 billion in the same period last year.
Despite the 6.3% increase in passenger volume to 11.71 million passengers from 11.01 million passengers in 2023, yield per passenger declined by 6.90% due to increased competition in the market.
Revenue from cargo operations, on the other hand, grew to P6.47 billion from last year’s P5.71 billion due to higher cargo volume.
Ancillary revenues likewise increased 17.05% to P10.24 billion mainly due to higher volume of ticket rebooking, seat upgrades and baggage ancillary fees.
Other revenues increased to P0.07 billion from P0.04 billion last year, mainly attributable to lease income generated from aircraft operating lease arrangements with an entity under common control.
Operating expenses for the first nine months of the year increased 7% to P122 billion primarily because of higher costs of aircraft ownership, maintenance and airport handling charges.
Capital expenditures grew to $263 million (P15 billion) with a substantial portion dedicated to major maintenance requirements of its aircraft and engines and enhancements in the cabin to reinforce operational integrity and ensure a well differentiated quality service for customers.
The capex includes pre-delivery payments for the Airbus A350-1000s on order.
“The latest net income report reflects our ongoing focus on investments to ensure higher level products and services for our customers – building up our fleet, upgrading our cabins, rolling out digital innovations and refining a high-performance culture for our teams,” PAL president and chief operating officer Captain Stanley Ng said in a statement.
“As market conditions normalize, we are continuing to see a moderation in growth and a more challenging business environment where rising costs exert greater pressure on the economics of airline operations,” Ng added.
PAL said it continues to expand its network with the launch of its Manila-Seattle route on October 2.
In preparation for the busy holiday season, the airline is resuming its Clark-Siargao flights beginning December 3, Cebu-Osaka flights on December 22, and introducing the Manila-Cauayan route starting January 15.
The flag carrier said an uptick in operational efficiency has helped it boost its on-time performance, earning it a place among the Top 10 Most Punctual Airlines in the Asia Pacific.
