P21 Billion: Philippine Airlines Nearly Doubles Net Profit in 2023
Philippine Airlines (PAL) net income soared 92 percent to P21 billion in 2023 from P11 billion the year before, the company reported on Monday (April 1). Not counting any one-off restructuring benefits, this is the highest reported net profit in PAL’s history.
The Lucio Tan-controlled airline credited increased operational activity and a resurgence in passenger traffic, both domestically and internationally for the record-breaking profits.
Revenues also surged 27 percent to P181 billion from P139 billion, while passenger service revenues surged 37 percent to P160 billion from P114 billion. Earnings from cargo and ancillary units also increased.
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PAL operated a total of 105,294 flights in 2023, up 36 percent from the previous year's 77,533 flights. Some 14.7 million passengers flew PAL throughout the year, a significant 58 percent uptick from 2022's 9.3 million passengers.
Operating income also soared 69 percent to P28 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 43 percent to P43 billion.
Operating expenses, meanwhile, also increased 21 percent to P153 billion in 2023, primarily driven by the rise in the number of flights operated during the year. Fuel costs, representing the largest expense for PAL at 31 percent of revenues, increased eight percent year-on-year to P57 billion, partly offset by a decrease in jet fuel prices compared to 2022.
“To preserve the gains we have achieved, we must not rest on our laurels,” PAL President and Chief Operating Officer Captain Stanley K. Ng said. “PAL’s corporate transformation continues. We are taking in new aircraft, retrofitting cabins of current aircraft, upgrading airport lounges and introducing more product innovations to address our strategic, financial and operational needs across all areas of our operations.
“Our focus is set firmly on taking care of our customers,” he added. “We will work collaboratively with government authorities and our service partners to build up our network and take the nation’s flag carrier to new heights in the coming years.”
