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Philippine Airlines earned its first-ever “BB” Long-Term Issuer Default Rating from Fitch Ratings, with a Stable Outlook
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The rating recognizes PAL’s market position, diversified network, sound liquidity, competitive cost structure, prudent fleet strategy, and post-restructuring operational discipline
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Fitch expects PAL to maintain financial prudence while pursuing measured growth, with improving credit metrics over the long term
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PAL president Richard Nuttall said the rating validates the airline’s efforts to strengthen its business, financial, and operational fundamentals
Philippine Airlines (PAL) received its first-ever “BB” Long-Term Issuer Default Rating with a Stable Outlook from Fitch Rating as the country’s flag-carrier continues to strengthen its financial and operational foundations.
Fitch cited PAL’s market position, diversified route network, sound liquidity position, competitive cost structure, and disciplined fleet expansion strategy in assigning the upgraded rating, crediting the airline’s operational turnaround following its restructuring.
“The airline has adequate diversification, serving 30 domestic and 40 international destinations in 16 countries, and operating 88 routes. International operations accounted for 77% of revenue in 2025. PAL also benefits from limited diversification through its cargo business, which contributed 5% of revenue,” Fitch said.
The ratings agency said the Stable Outlook reflects its expectation that the carrier will sustain prudent financial management while pursuing measured growth, backed by adequate liquidity and steadily improving credit metrics.
“We welcome Fitch Ratings’ assessment of Philippine Airlines and view it as recognition of the progress we have made in strengthening our business, financial and operational fundamentals,” Richard Nuttall, PAL president, said in a statement.
“We remain focused on maintaining financial prudence while delivering world-class excellence and elevating the experience we provide to our customers at every stage of their journey,” added Nuttall.
READ: PAL Q1 2026 net income grew 2.6%
The airline said it continues to invest in fleet modernization, customer experience enhancements, and strategic initiatives to improve operational efficiency, strengthen connectivity, and support the country’s travel and tourism sectors.
READ: PAL secures Ba2 rating with stable outlook from Moody’s
PAL is also preparing to join the oneworld Alliance, a move expected to boost the carrier’s global presence while expanding Southeast Asia’s representation within the international airline network. The official announcement was made during the International Air Transport Association’s annual general meeting in Rio de Janeiro, Brazil.
Founded in 1941, PAL is the country’s only full-service network airline. It operates scheduled nonstop flights from its hubs in Manila and Cebu to 29 domestic destinations and 40 international destinations across Asia, North America, Australia and the Middle East.
