PAL earnings slip as global travel patterns normalize

Flag carrier Philippine Airlines (PAL) on Thursday reported a 25% decline in its first-quarter earnings, following the decline in global travel following the post-pandemic surge seen in the past year.

In an emailed statement, PAL said its total comprehensive income slipped to $81 million, while its operating income fell by 12% to $118.4 million which it said was an “expected outcome” as global patterns normalized.

Consolidated revenues for the quarter increased by 6% to $826 million, as passenger volumes jumped by 13.6% to bring passenger revenues up by 5% to $720.9 million, while cargo revenues eased by 4% to $34.4 million.

The company operated 28,000 flights during the quarter, carrying a total of 3.8 million passengers.

“Our positive bottom line confirms that we are on track with our growth strategies, in areas of fleet growth, route network expansion and service innovations,” PAL president and chief operating officer Stanley Ng said.

“We are particularly pleased with the strong reception that the Manila-Seattle route has been getting since our announcement last month… However, supply chain issues remain and continue to put a strain on our operations, but we are determined to address these challenges,” he added.

Ng in January said that the company is set to ink a temporary lease agreement for two wide-body aircraft this year, following the double-digit growth in passengers. It has already accepted the delivery of a Boeing 777-300ER as part of its fleet expansion.
https://www.gmanetwork.com/news/money/companies/895784/philippine-airlines-to-lease-two-wide-body-aircraft-for-long-haul-flights/story/

The carrier is also scheduled to reintroduce flights between Clark and Basco, Batanes in July, and is eyeing to launch nonstop flights between Manila and Seattle on October 2, 2024.

PAL currently operates nonstop flights between the Philippines and Los Angeles, San Francisco, New York, Honolulu, and Guam. --VAL, GMA Integrated News