Flag-carrier Philippine Airlines (PAL) reported a net income of $13 million (P812 million) and an operating income of $27 million (P1.6 billion) in the third quarter of 2024.
In a disclosure to the Philippine Stock Exchange (PSE) through parent company PAL Holdings, the airline said this is its 11th consecutive quarter of positive financial results, since its emergence from the pandemic restructuring.
Last year, the firm reported a net income of $98 million (P5.4 billion) and operating income of $130 million (P7.2 billion) for the third quarter.
Year-to-date, PAL has generated a net income of $135 million (P8 billion), with a net operating income of $209 million (P12 billion) for the first nine months of 2024.
This year, PAL carried 11.7 million passengers, a six percent growth from the same January to September period last year, generating $2.3 billion (P134 billion) in revenues.
This represents a reduction of four percent versus the same period in 2023 as significant industry capacity growth impacted yields.
Operating expenses increased by seven percent to $2.1 billion (P122 billion) in the first nine months of 2024, mainly due to the rise in costs of aircraft ownership, maintenance and airport handling charges.
Capital expenditures increased to $263 million (P15 billion) with a substantial portion dedicated to major maintenance requirements of its aircraft and engines and enhancements in the cabin to reinforce operational integrity and ensure a well- differentiated quality service for its customers. The capex also includes pre-delivery payments for the A350-1000s on order.
“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,” said PAL President and CEO Captain Stanley K. Ng.
He added that “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."
With the continuing streak of positive quarters, the airline saw a strengthened balance sheet with total equity increasing to $776 million as of Sept. 30, 2024 from $641 million at the end of 2023.
The Philippines’ leading international carrier, PAL continues to expand its network with the launch of its new Manila-Seattle route on Oct. 2.
In preparation for the busy holiday season, the airline is resuming its Clark-Siargao flights beginning Dec. 3; its Cebu-Osaka flights on Dec. 22; and introducing the new Manila-Cauayan route starting Jan. 15, 2025.
An uptick in operational efficiency has helped PAL boost its on-time performance, earning it a place among the Top 10 Most Punctual Airlines in the Asia Pacific region for August and September 2024, echoing a similar achievement in the last half of 2023.