Philippine Airlines (PAL) reported a 25 percent decrease in comprehensive income to $81 million in the first quarter of 2024 from $108.2 million (P5.9 billion) for the same period in 2023.
In a May 2 disclosure to the Philippine Stock Exchange (PSE) by its parent company PAL Holdings, Inc., PAL said it expected the reduced income for the quarter “as global travel patterns normalize following the post-pandemic surge of 2023.”
Operating income dipped by 12 percent year-on-year from $135.2 million (P7.4 billion) in the first three months of 2023 to $118.4 million in the same period of 2024, attributed to higher operating expenses and a 13 percent increase in flights.
Price hikes on services for maintenance, ground handling, airport and passenger service charges were also cited as factors that affected the company’s early earnings.
Despite this, the airline’s revenue jumped by six percent to $826 million from $776.9 million (P42.6 billion) in last year’s first quarter, driven by the growth in passenger volume.
Passenger revenues were up by five percent to $720.9 million in the first quarter this year from $686.2 million in 2023. However, even though cargo volume grew by 21 percent, cargo revenues were down by four percent in the first quarter of the year.
"Our positive bottom line confirms that we are on track with our growth strategies, in the areas of fleet growth, route network expansion and service innovations,” said PAL President and Chief Operating Officer Capt. Stanley K. Ng.
“However, supply chain issues remain and continue to put a strain on our operations, but we are determined to address these challenges,” he added.
Capital expenditures (capex) for the first quarter of 2024 reached $73 million, used for pre-delivery payments on orders of Airbus A350-1000s and other equipment.
In a media conference last April 2, the airline set its full year 2024 capex at $450 million, which it will allocate to aircraft-related operations such as refurbishments, maintenance, upgrades, and delivery payments.
It is expecting to add one more aircraft in its current 78 fleet by the end of 2024 with the arrival of the Boeing 777 in the middle of the year.
From 2025 to 2029, PAL expects to receive 22 new Airbus aircrafts, specifically nine A350-1000s and 13 A32neo (new engine option) aircraft.
In the same conference, PAL announced that it will mount direct flights between Manila and Seattle, United States starting this coming October, becoming the first Philippine aircraft to offer this service.
It will also reopen flights between Clark International Airport (CRK) and Basco, Batanes beginning July this year.