PAL posts $78.55M net income in Q1 2026, up 2.6%

Flag carrier Philippine Airlines (PAL) reported Tuesday a 2.6% increase in its net income to $78.55 million in the first quarter of 2026, with total revenues rising 9.7% to $895.70 million.

In a statement, PAL said its first quarter performance was driven by sustained passenger demand, stronger cargo yields, and continued growth in ancillary revenues.

The airline said its passenger revenues stood at $759.65 million, up 8.7% as it carried 4.30 million passengers, up 6.1% year-on-year. 

The passenger growth was supported by post-holiday travel demand and a resilient network.

Cargo revenues also rose 22.5% to $43.21 million, reflecting improved yields amid tight global airfreight capacity, particularly in lanes affected by Middle East disruptions. 

Meanwhile, total operating expenses rose 7.1% to $793.85 million as flying operations—the airline's largest cost component—increased 9.2% to $447.08 million, reflecting higher flight activity, late-quarter fuel price pressures linked to developments in the Middle East, and increased depreciation and amortization from fleet expansion.

"Our first quarter results reflect both the strength of demand for Philippine travel and the disciplined execution of our team," said Richard Nuttall, president of Philippine Airlines.

"However, these results only partially reflect the impact of the escalation in the Middle East late in the quarter, which has introduced volatility in fuel prices and disrupted parts of the global aviation network. We are actively managing our network and costs to protect margins and liquidity. While near-term headwinds remain, we are confident in the strength of our fundamentals and are taking prudent steps to sustain our momentum," said Nuttal. — VDV, GMA News