PAL income drops 25% to $81-M in first quarter

CEBU, Philippines — Flag carrier Philippine Airlines (PAL) posted a positive performance in the first quarter of 2024 with a total comprehensive income of US$81 million.

While 25 percent less than its first-quarter net income in 2023,  this is an expected outcome as global travel patterns normalize following the post-pandemic surge of 2023, the company said in a statement.

PAL’s operating income of US$118.4 million is 12 percent lower year-on-year, due to an increase in operating expenses, as a result of the 13 percent increase in flights, as well as the continued industry-wide price hike on services covering maintenance, ground handling, airport and passenger service charges.

PAL’s consolidated revenues grew by six percent to US$826 million for the first quarter that ended last March 31, 2024, mainly driven by a 13.6 percent increase in passenger volume.

 Passenger revenues in the first three months of the year grew by five percent to US$720.9 million compared with US$686.2 million?in the same period last year.

Cargo revenues reached US$34.4 million, a four percent decrease despite posting a 21 percent growth in cargo volume compared to the first quarter 2023 performance.

Capital expenditures (capex) this quarter reached US$73 million for the pre-delivery payments on the Airbus A350-1000s on order and other aircraft-related requirements.

“Our positive bottom line confirms that we are on track with our growth strategies, in the areas of fleet growth, route network expansion, and service innovations. We are particularly pleased with the strong reception that the Manila-Seattle route has been getting since our announcement last month,”?said Capt. Stanley K. Ng, PAL President and Chief Operating Officer.? 

“However, supply chain issues remain and continue to put a strain on our operations, but we are determined to address these challenges,” Capt. Ng added.

PAL is scheduled to reintroduce flights between Clark and Basco, Batanes beginning July this year, in line with its move to reopen more routes out of Clark and grow its network from Central Luzon.

In October, the flag carrier will be the first carrier to link the Philippines and the U.S.

Pacific Northwest with nonstop flights between Manila and Seattle.?Seattle will be PAL’s sixth destination in the U.S. and the eighth in North America. 

PAL now operates the largest network of nonstop flights between the Philippines and the United States, serving Los Angeles, San Francisco, New York, Seattle, Honolulu, and Guam.