The declines came amid higher costs and slower revenues, the flag carrier said in a statement on Tuesday.
Management’s view
“As market conditions normalize, we are continuing to see a moderation in growth and a more challenging business environment where rising costs exert greater pressure on the economics of airline operations,” said Capt. Stanley K. Ng, PAL president and chief operating officer.
Higher volume, costs
Passenger volume year-to-date in 2024 reached 11.7 million, a 6-percent increase from the 11 million passengers carried in the first nine months of 2023.
Total revenues during the first nine months of 2024 shed 4 percent over the past year, due to rising industry capacity and compressed yields.
Operating expenses also increased by 7 percent year-to-date, amounting to $2.1 billion (P122 billion), driven by higher costs associated with aircraft ownership, maintenance, and airport handling.
Fleet investments
PAL said capital expenditures surged to $263 million (P15 billion) on fleet maintenance, cabin enhancements, and pre-delivery payments for new A350-1000 planes.
“The latest net income report reflects our ongoing focus on investments to ensure higher-level products and services for our customers – building up our fleet, upgrading our cabins, rolling out digital innovations and refining a high-performance culture for our teams,” Ng said.
Healthy balance sheet
PAL said its total equity rose to $776 million as of Sept. 30, 2024, from $641 million at the end of 2023.
The carrier launched its new Manila-Seattle route on Oct. 2. It will also resume Clark-Siargao and Cebu-Osaka flights in December, with a new Manila-Cauayan route starting on Jan. 15, 2025.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
