MANILA, Philippines — Lucio Tan-owned Philippine Airlines (PAL) doubled its profit to nearly P17 billion in 2023 lifted by its sustained dominance in the competition for international travelers even with the arrival of new players.
Based on its financial report, PAL’s parent PAL Holdings Inc. grew its net income by more than double to P16.81 billion in 2023, from P8.16 billion in 2022.
Revenue increased by 29 percent to P179.12 billion, while expenses jumped by 24 percent to P151.04 billion, as PAL saw a resurgence in aviation activities in the first full year out of the pandemic.
The flag carrier recorded a 39 percent spike in passenger revenues to P159.58 billion, as the airline grew its passenger volume to 14.68 million. PAL also raised its load factor — the number of seats sold against the slots available — to 80.8 percent in 2023.
PAL sourced 80 percent of its passenger revenues from the international segment, maintaining its title as the leading domestic carrier for foreign flights.
In the Philippines, PAL ate up 47 percent of the demand for flights to the US and Canada even as it faced new competitors in the segment.
Last year, United Airlines started mounting non-stop flights between Manila and San Francisco, challenging PAL in a market it has dominated for so long.
Further, the carrier cornered 33 percent of the market for flights to the Middle East and 28 percent to Asia and Australia, keeping its grip tight in the demand for international service.
For the local flights, PAL accounted for 32 percent of the market in 2023, second to Cebu Pacific’s 51 percent but ahead of AirAsia Philippines’ 17 percent.
The airline said it manages to keep its competitive advantage by improving products and services and offering the best fares. For instance, PAL expects to sustain its leadership in the demand for flights across the Pacific through its in-flight service that appeals mainly to Filipinos.
On top of this, PAL is expanding its fleet to stay ahead of the curve in air travel. PAL is bringing in 13 Airbus A321neo between 2026 and 2029 and nine Airbus A350s between 2025 and 2027.
PAL president and COO Stanley Ng said the airline would maximize its financial gains to widen its flight network and upgrade its fleet and services.