PAL earmarks P176.6-B for fleet investments

Flag carrier Philippine Airlines (PAL) is investing $3.2 billion or around P176.6 billion for its fleet expansion initiative.

In a statement on Friday, PAL said the $3.2 billion fleet investment will be allotted for the purchase of nine Airbus A350-1000 long-range jetliners.

The amount is based on the list price of $366.5 million per aircraft, the carrier said.

PAL added that it is also increasing its customer care and contact center agents, and rolling out a new customer relations management system within 2023 to provide more personalized self-service options for customers.

The airline is boosting its fleet and services investments as it banks on the recovery of the air travel sector amidst recording a net income of P13.6 billion in the first half of 2023 from P4.1 billion in the first half of 2022.

“We remain steadfast in our commitment to invest in new aircraft, improved cabins, and enhanced travel experience for our valued customers,” said PAL president and chief operating officer Stanley Ng.

“The latest positive financial results enable us to build a better, stronger and more agile Philippine Airlines that creates greater value for our customers, and we are grateful for their continuing support and patronage,” added Ng.

PAL said it flew seven million passengers in the first half, up 89% year-on-year, and over 50,400 flights, 56% more than last year.

With this, the carrier’s passenger revenue grew to P78.2 billion, higher by P33.1 billion from a year earlier “as demand continues to recover on PAL’s international and domestic routes.”

Cargo revenues, meanwhile, dropped 54% versus last year, as many cargo charter flights were discontinued to give way to more passenger flights to meet the surge in demand.

In the first half of the year, PAL said it restored flights on several routes to mainland China and launched nonstop services to Perth along with flights from Clark to Caticlan and Boracay.

In addition to an extensive network of 32 domestic destinations served from hubs in Manila, Cebu, Clark and Davao, the Philippine flag carrier operates the largest network of nonstop flights between the Philippines and North America, Japan, the Middle East, and Australia.

“We are pleased to see that Philippine Airlines is beginning to realize the benefits of the sacrifices we took over the past few years. PAL is on a recovery track and is now in a position to carry out major product and digital transformation initiatives in order to grow amid a more competitive and challenging aviation industry,"  said Lucio Tan III, president and chief operating officer of PAL Holdings Inc. —Ted Cordero/ VAL, GMA Integrated News