The country's flag carrier, Philippine Airlines (PAL), ended the first half of the year with P91.6 billion in total consolidated revenues, fueled by higher passenger, cargo, and ancillary service volumes.
"Philippine Airlines remains on track in its transformative growth strategy as we deliver a more efficient airline offering quality service to fulfill our mandate as the Philippines' flag carrier and only full-service airline with the largest network," said PAL Holdings Inc. president and chief operating officer Lucio C. Tan III.
PAL expanded flights by 11% and carried 7.9 million passengers across its international and domestic network, 13% more than 1H 2023. PAL's expansion aligns with an overall growth in air travel, with Manila's NAIA showing a 13% growth in passenger volume. PAL also reported that its Mabuhay Miles lifestyle program has reached a new milestone and has grown to six million members.
Overall, PAL announced a net income of P6.9 billion and an operating income of P10.432 billion for the six months, which aligns with expectations amidst a normalizing market environment versus the travel demand surges of 2023.
Capital expenditures increased to P9 billion, primarily for aircraft purchases, maintenance, and cabin upgrades, reinforcing operational integrity and differentiated quality service for the airline's customers.
For the second quarter of 2024, the airline generated revenues of P45.1 billion, a 4% decrease from Q2 2023, reflecting yield pressures brought about by the return of more capacity to the market. Operating income was negatively impacted by higher costs related to increased flying and maintenance activities for Q2 and was reported at P3.7 billion. PAL's net income for Q2 2024 was P2.35 billion.
"As the industry adjusts to a re-balancing between demand and capacity and continues to face cost and supply chain challenges, we are implementing a disciplined investment plan to upgrade our fleet and continue our digital transformation so that we can serve our passengers better," added Captain Stanley K. Ng, PAL president and chief operating officer.
PAL operates the largest network of nonstop flights between the Philippines and the United States, serving Los Angeles, San Francisco, New York, Honolulu, and Guam.
In October this year, Seattle will join the network as PAL's sixth U.S. destination and the eighth in North America.
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