Hallelujah: PAL Posts Net Income for the First Time in 6 Years
Philippine Airlines reported operating income of $125 million (about P6.6 billion) and net comprehensive income of $71 million (about P4.2 billion) for the first six months of 2022. This is the first time the country’s flag carrier posted positive income since 2016.
Total revenues for the first half of the year was at $1.1 billion (P58.1 billion), which PAL says represents a 258 percent growth in passenger revenues and 31 percent growth in cargo revenues compared to the same period in 2021.
PAL and other airlines have benefited from the resumption of travel following the lifting of health restrictions caused by the pandemic. PAL, in particular, added about 1,500 flights just in March 2022, including international flights to Japan, North America and the Middle East, as well as domestic flights between Manila to tourism hotspots like Cebu, Boracay, and Palawan.
PAL’s operating expenses, meanwhile, amounted to $986 billion (P51.5 billion) for the period, which includes $380 million (P19.9 billion) in fuel expenses, reflecting the impact of significantly higher fuel prices afflicting the aviation industry worldwide.
PAL filed for Chapter 11 bankruptcy in New York in September 2021 but exited it in early January 2022 after courts approved the company’s financial restructuring plan to cut debt and streamline operations.
“We view the positive operating results for 1st half 2022 as a demonstration of the loyal support of our PAL customers, for which we are deeply grateful, and a validation of the efforts of our shareholders, management and personnel to rebuild our international and domestic network amidst the strengthening recovery of air travel,” said PAL President & COO Capt. Stanley K. Ng. “We acknowledge tough challenges ahead, as various regions grapple with rising inflation, higher energy costs and economic uncertainties.
“So we will continue to be fiscally prudent as we mobilize our talents and resources to grow responsibly, in a way that helps boost tourism, supports overseas Filipinos and offers the best value to travelers and cargo shippers,” he added.
PAL added that it has raised about $505 million (about P28 billion) in fresh capital from its shareholder family, which it plans to use to restore to restore more flights and routes both domestic and international.
Air travel was one of the hardest-hit industries by the pandemic, with one report saying the entire industry lost about $138 billion last year.