Net income measures the company’s core profit from business operations, while comprehensive income also captures changes in currency values and the fair value of financial assets.
The first quarter is typically a lean season for airlines, making PAL’s improved profitability an encouraging early sign for the rest of the year.
Total revenues grew by 2.5 percent to P46.95 billion, led by steady passenger business and a stronger cargo performance.
Management’s view
“We are greatly encouraged by the support of our valued customers who choose to fly on Philippine Airlines’ global network, and for whom we are investing in progressive product and service improvements, fleet renewal efforts and digital innovations, with safety and reliability as our topmost concerns,” said Captain Stanley K. Ng, Philippine Airlines president and chief operating officer.
Ng will step down as president of Philippine Airlines on May 29 after serving for over three years.
He will transition to a new role as vice president of PAL Holdings and member of the airline’s Board, with British executive Richard Nuttall taking his place as the new president of the flag carrier.
Supplier compensation bolsters bottom line
In February 2025, PAL received a one-time refund from its supplier to compensate for grounded aircraft and repair delays that mainly hurt its operations in 2023 and 2024.
The refund came in the form of a P1.53 billion ($26.34 million) credit memo issued by International Aero Engines, LLC (IAE), under a purchase agreement originally signed in 2016 and later amended.
This settlement sharply boosted PAL’s other income for the first quarter of 2025.
Passenger revenues rise
Passenger revenues edged up 0.5 percent to P40.53 billion, as the number of passengers increased from 3.86 million to 4.06 million
This volume growth helped offset a drop in average passenger yield, or fare per kilometer flown. The small revenue gain reflects how PAL flew more people, but at slightly lower fares on average.
Total expenses rose by 8.2 percent to P42.29 billion, mainly due to higher flying costs, engine repairs, and added transportation spending tied to short-term aircraft leases.
