Flag carrier Philippine Airlines (PAL) reported a 22 percent growth in its net income to over ₱9 billion for the January-to-September period, as robust demand for its core services offset higher operating costs.

In a public disclosure, PAL’s parent company, PAL Holdings Inc., reported that its net income reached ₱9.88 billion in the first nine months, surpassing ₱8.08 billion during the same period in 2024.

Revenues in the nine-month period stood at ₱136.01 billion, three-percent higher than last year’s ₱132.45 billion.

The Lucio Tan-led airline attributed the stronger performance this year to the “significant increase in cargo and ancillary revenues.”

By the end of September, PAL reported that its cargo revenues inched up from ₱6.47 billion to ₱6.71 billion, primarily fueled by increased cargo volume.

Ancillary revenues, on the other hand, increased by 24 percent to ₱12.67 billion from ₱10.24 billion, driven by prior revenue adjustments and higher demand for seat upgrades.

Passenger revenues remained robust in the nine-month period, reaching ₱116.56 billion from ₱115.66 billion a year ago.

PAL said the growth was on the back of an increase in Mabuhay Miles’ related revenues, and an increase in other revenues driven by an increase in the volume of ticket sales.

In the third quarter—which is typically a lean period for airlines—revenue stood at ₱36.10 billion, compared to ₱35.82 billion in the same quarter last year.

Over the nine months, consolidated expenses amounted to ₱124.85 billion, with the bulk of costs related to flying operations reaching ₱64.01 billion.

Higher flying costs in the period were primarily due to an increase in flying depreciation from the capitalization of major engine and aircraft repairs, offset by lower fuel and oil expenses.

Operationally, PAL strengthened its regional standing, clinching the top on-time performance (OTP) ranking among Asia-Pacific carriers from August to October this year, based on Cirium data.

The airline also received a four-star major rating from Airline Passenger Experience Association (APEX) Four Star, which is an airline rating program based on certified passenger feedback.

“These accolades enhance PAL’s position as the nation’s flag carrier, affirming its reputation for reliability, customer service, and operational excellence,” said PAL President Richard Nuttall.

“As we move forward with our strategic and long-term initiatives, we remain focused on delivering value to stakeholders, strengthening our financial position, elevating the passenger experience, and ensuring the highest standards of safety in all our operations,” he added.

PAL said its capital expenditures (capex) reached $308 million in the first nine months, from $265 million in the same period last year.

The airline’s capex was utilized for ongoing fleet modernization, with the first batch of its 18 refurbished Airbus A321ceo aircraft expected to be rolled out before the end of the year.

These aircraft are expected to be deployed on routes to Tokyo, Osaka, Jakarta, Bali, and Guam.