PAL Holdings Inc., operator of Philippines Airlines (PAL), yesterday reported a 92 percent growth in profit in 2023, its all-time strongest financial performance, driven by a surge in flight operation and passenger traffic in its domestic and international operations.
In a regulatory filing, PAL said it registered a net income of P21 billion in 2023 compared to its P11 billion reported net income in 2022. It is the highest in PAL’s history, excluding any one-off restructuring benefits.
The flag carrier operated 105,294 flights in 2023, a 36 percent growth from the 77,533 flights mounted in 2022, or an increase of more than 27,000 flights.
The increase in flight activity enabled PAL to carry 14.7 million passengers in 2023, a 58 percent uptick from 9.3 million passengers in 2022.
With the continued recovery of air travel post-pandemic, PAL recorded a 37 percent surge in passenger revenues to P160 billion last year from P114 billion in 2022.
Total net revenues, including cargo and ancillary revenues, grew by 27 percent to P181 billion from P139 billion during the period.
Operating income grew by 69 percent to P28 billion last year from P16 billion in the previous year, while earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 43 percent to P43 billion.
The operating and EBITDA margins improved to 15 percent and 24 percent, respectively, reflecting the increased scale and efficiency of its operations, PAL said.
“I express my profound thanks for the support and loyalty of our valued passengers and assure them of our unstinting focus on taking care of them when they fly with us. I laud the strategic approach of the PAL management team in navigating industry challenges. Our greatest resources are our people in the PAL Group who have stood resilient and have adopted a transformation mindset that benefits the company and its customers,” said
Lucio Tan III, PAL Holdings president and chief operating officer.
PAL emerged from the Chapter 11 restructuring in December 2021 after it received unanimous support from its lenders, aircraft lessors, equipment manufacturers, and service providers. With this, PAL continued with business-as-usual operations, while finalizing the restructuring of its network, fleet, and organization.
With, PAL’s successful restructuring plan it has raised $505 million in fresh capital, reduced debt by $2 billion, and streamlined its fleet.
“PAL’s corporate transformation continues — we are taking in new aircraft, retrofitting cabins of current aircraft, upgrading airport lounges, and introducing more product innovations to address our strategic, financial, and operational needs across all areas of our operations,” said Capt. Stanley Ng, PAL president and chief operating officer.
“Our focus is set firmly on taking care of our customers. We will work collaboratively with government authorities and our service partners to build up our network and take the nation’s flag carrier to new heights in the coming years,” Ng added.
PAL said it plans to capitalize on the increased resources to strengthen its global and local network, upgrade its aircraft fleet, and introduce new and improved products and services in the coming years.
