PAL net income up 92% in 2023

PAL Holdings Inc., which operates flag carrier Philippine Airlines, saw a 92% growth in its 2023 bottom line, as the company saw a double-digit increase in flights mounted during the period.

In a regulatory filing, PAL said its net income rose to $379 million from $197 million in the previous year, which it attributed to the growth in operations and passenger traffic both internationally and domestically.

PAL said it operated 105,294 flights carrying 14.7 million passengers in 2023, up from the 77,533 fights in 2022 which carried 9.3 million passengers.

Revenues increased by 37% to $2.9 billion from $2.1 billion, while total net revenues — including cargo and ancillary revenues — rose by 27% to $3.2 billion.

Operating expenses climbed 21% to $2.7 billion, with fuel remaining the largest cost after posting an 8% increase to $1 billion. This was due to the increase in flight activity which offset by the decrease in jet fuel prices.

The latest earnings come as PAL emerged from its voluntary Chapter 11 bankruptcy proceedings, which allowed the firm to reorganize its debts while staying in operation.

Its reorganization plan — approved by the US restructuring Court in December 2021 — provided for over $2.0 billion in permanent balance sheet reductions from existing creditors, improvements in its critical operational agreements, and additional liquidity including a $505-million investment in long-term equity and debt financing from PAL’s majority shareholder.

“I laud the strategic approach of the PAL management team in navigating industry challenges,” PAL Holdings president and chief operating officer Lucio Tan III said.

“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,” he added.

PAL president and chief operating officer Stanley Ng in January said the company is set ink a temporary lease agreement for two wide-body aircraft this year, following the double-digit growth in passengers.—AOL, GMA Integrated News