PAL Holdings profit plunges 58% to P7 billion
Despite busier operations, the parent company of Philippine Airlines (PAL) registered a 58-percent drop in its net income last year as revenues weakened and expenses rose.
PAL Holdings Inc., in a disclosure on Friday, reported its net income plummeted to P7.02 billion last year from P16.81 billion in 2023.
Also, the top line decreased by nearly 1 percent to P178 billion last year from P179.1 billion in 2023.
Passenger revenues—bulk of the cash inflows—slipped by 3 percent to P154.95 billion last year from P159.58 billion in 2023.
The airline facilitated 110,867 flights carrying 15.6 million passengers last year, up 6 percent from 2023.
“In 2024, PAL operated 5 percent more flights while improving on-time performance by 2 percent and schedule reliability by 4 percent,” Stanley Ng, PAL president and chief operating officer, said in a statement.
The company said such results came “despite a general moderation of growth rates, inflationary strains and increased competition that put pressure on yields.”
Greater flying operations and passenger service expenses dragged the revenues. In total, the operating expenses rose by 3 percent to P161.59 billion last year.
Meanwhile, cargo revenues rose by 15.3 percent to P9.16 billion for the period.
Add to fleet
The flag carrier spent $387.7 million last year for the purchase of new aircraft and jet maintenance. It took delivery of two Boeing 777-300ER units for route expansion.
“PAL’s financial discipline is critical in a very cyclical industry. Enabled by the gains we have made postrestructuring, we are making purposeful investments to improve our product and update our systems with the aim of delivering better service to our passengers more efficiently,” PAL chief financial officer Anna Bengzon said.
PAL is set to receive nine Airbus A350-1000 long-range aircraft and 13 A321neo regional aircraft in the coming years.
The flag carrier has been ramping up its network, including the launch of inaugural Manila-Seattle flights.
With the new route, PAL now has six destinations in the United States, which also include Los Angeles, San Francisco, New York, Honolulu and Guam.
The Manila-Seattle flight also serves as a gateway to Chicago, Las Vegas, Washington DC, Houston, Portland, Anchorage and other destinations served by PAL’s interline partner, Alaska Airlines.
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