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% less than PAL’s first quarter net income in 2023, this is an expected outcome as global travel patterns normalize following the post-pandemic surge of 2023.
PAL’s operating income of US$118.4 million is 12% lower year-on-year, due to an increase in operating expenses, as a result of the 13% 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 6% to US$826 million for the first quarter that ended last March 31, 2024, mainly driven by a 13.6% increase in passenger volume. Passenger revenues in the first three months of the year grew by 5% 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 4% decrease despite posting a 21% growth in cargo volume vs Q1 2023 performance. Capital expenditures 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.”
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.
