Total revenues increased 28.7 percent to about P179 billion as flag carrier Philippine Airlines (PAL) carried 14.7 million passengers — a 58-percent increase over the past year, its latest annual report showed.
Total operating expenses, mainly driven by more flying activity, also increased by 24 percent to nearly P122 billion. PAL also noted a decline in jet fuel prices, the biggest contributor to flying operations.
“PAL’s corporate transformation continues – we are taking in new aircraft, retrofitting cabins of current aircraft, upgrading airport lounges and introducing more product innovations to address our strategic, financial and operational needs across all areas of our operations.”
“Our focus is set firmly on taking care of our customers. We will work collaboratively with government authorities and our service partners to build up our network and take the nation’s flag carrier to new heights in the coming years.”
PAL is one of three major Philippine carriers operating an extensive network of domestic and international flights.
Its financial health has come under scrutiny in the wake of its 2021 Chapter 11 bankruptcy filing in the United States, which it promptly exited after a few months after restructuring $2.1 billion in obligations with creditors and suppliers. The carrier also slashed its fleet size by 25 percent.
Competition with rival carriers and supply chain disruptions amid the postpandemic revenge travel surge have posed a challenge for PAL and other domestic carriers in scaling up operations.
PAL ended 2023 with 67 aircraft (22 widebody and 45 narrowbody planes) from 64 planes ( 20 widebody and 44 narrowbody planes) in 2022. Its employee headcount also increased by over 9 percent to 6,461 the past year, the report showed.
In June last year, PAL finalized an order for nine Airbus A350-1000s capable of carrying 380 passengers. The planes will be delivered in the coming years and will boost its capabilities to fly to more destinations in North America and Europe.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
