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Philippine Airlines reported a 2.6% year-on-year increase in net income to US$78.55 million in the first quarter of 2026, driven by sustained passenger demand, stronger cargo yields, and continued growth in ancillary revenues
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Passenger revenue grew 8.7% as the airline carried 6.1% more passengers at 4.3 million
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Cargo revenues increased 22.5% despite a 2.4% contraction in physical freight volume, reflecting improved yields amid tight global airfreight capacity, particularly in lanes affected by the ongoing Middle East conflict
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PAL president Richard Nuttall said results only partially reflect the impact of the escalation in the Middle East late in the quarter, and they are actively managing their network and costs to protect margins and liquidity
Philippine Airlines (PAL) reported a 2.6% year-on-year increase in net income to US$78.55 million in the first quarter of 2026, driven by sustained passenger demand, stronger cargo yields, and continued growth in ancillary revenues.
Total revenue grew 9.7% year-on-year to $895.70 million, with passenger revenues posting an 8.7% increment to $759.65 million on the back of a 6.1% increase to 4.30 million during the period.
Growth was supported by post-holiday travel demand and a resilient network, the flag carrier said in a statement.
The airline’s capacity expanded in line with demand, with available seat kilometers (ASKs) increasing 7.2% and flights rising 8.4% during the first quarter of the year.
Cargo revenues likewise increased 22.5% to $43.21 million despite a 2.4% contraction in physical freight volume (down to 51.41 million kilograms), reflecting improved yields amid tight global airfreight capacity, particularly in lanes affected by the ongoing Middle East conflict.
Ancillary revenues also rose 11.2% to $83.56 million, driven by higher uptake of value-added and personalized travel services.
PAL generated an operating profit of $101.85 million during the first quarter, as revenue gains outpaced the increase in operating expenses. Total operating expenses rose 7.1% to $793.85 million.
Flying operations – the airline’s largest cost component – increased 9.2% to $447.08 million, reflecting higher flight activity, late-quarter fuel price pressures linked to developments in the Middle East, and increased depreciation and amortization from fleet expansion.
READ: PAL income rises 6.1% in 2025
Sustained net profitability generated strong operating cash flow during the quarter, allowing PAL to fund capital expenditures, service debt, and strengthen its cash position, while maintaining the liquidity needed to manage near‑term disruptions and support investments in fleet and passenger experience.
“Our first quarter results reflect both the strength of demand for Philippine travel and the disciplined execution of our team,” PAL president Richard Nuttall said.
“However, these results only partially reflect the impact of the escalation in the Middle East late in the quarter, which has introduced volatility in fuel prices and disrupted parts of the global aviation network,” he added. “We are actively managing our network and costs to protect margins and liquidity. While near-term headwinds remain, we are confident in the strength of our fundamentals and are taking prudent steps to sustain our momentum.”
PAL said it remains focused on maintaining financial discipline and operational resilience as volatility continues to shape the global aviation environment.
