PAL Holdings, Inc. (PAL) Delivers Record US$379 Million Net Income in 2023, Up 92%

Philippine Airlines (PAL) achieved its best-ever financial performance in 2023, making a spectacular impression. The Philippine flag carrier reported US$379 million (P21 billion) in net income for 2023, a 92% increase over the US$197 million (P11 billion) in net income reported for 2022.

In spite of a significant rise in operations and passenger traffic, both domestically and internationally, PAL was able to accomplish this successful result. The flag airline increased its number of flights by more than 27,000 to 105,294 in 2023, a 36% increase over the 77,533 flights it ran in 2022. PAL was able to handle 14.7 million passengers in 2023, a 58% increase from 9.3 million passengers in 2022, thanks to an increase in flight activity.

As air traffic continues to rebound from the epidemic, PAL's passenger revenues increased by 37% between 2022 and 2023, from US$2.1 billion (P114 billion) to US$2.9 billion (P160 billion). Cargo and ancillary revenues included; total net revenues increased by 27% to US$ 3.2 billion (P181 billion) from US$2.6 billion (P139 billion).
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A 21% rise in total operating expenses was mostly caused by the 36% increase in the number of flights flown in 2022, which brought the total to US$2.7 billion (P153 billion) from US$2.3 billion (P123 billion). Fuel continues to be PAL's biggest expense, accounting for 31% of sales. Fuel costs rose by 8% annually to US$1 billion (P57 billion) in 2023 as a result of an increase in flight activity that was somewhat offset by a drop in jet fuel prices in 2022.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 43% to US$765 million (P43 billion) and Operating Income jumped by 69% to US$501 million (P28 billion) from US$297 million (P16 billion). Operating and EBITDA margins significantly increased to 15% and 24%, respectively, as a result of PAL's operations being more scalable and efficient.

PAL Holdings President & Chief Operating Officer Lucio C. Tan III thanked the customers who entrusted their travel journeys to PAL and commended the dedication and commitment of the PAL Group workforce. “I express my profound thanks for the support and loyalty of our valued passengers and assure them of our unstinting focus on taking care of them when they fly with us. I laud the strategic approach of the PAL management team in navigating industry challenges. Our greatest resources are our people in the PAL Group who have stood resilient and have adopted a transformation mindset that benefits the company and its customers,” Mr. Tan said

PAL President and Chief Operating Officer Captain Stanley K. Ng said, “To preserve the gains we have achieved, we must not rest on our laurels. 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. 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.”

The US$ 379 million net income was the highest in PAL’s history, excluding any one-off restructuring benefits.

In the upcoming years, PAL intends to make the most of the extra resources by fortifying its local and international network, modernizing its fleet of aircraft, and launching fresh, enhanced goods and services.

​Philippine Airlines (PAL) is the Philippines’ flag carrier and only full-service network airline, as well as the first commercial airline in Asia. PAL's fleet of Boeing, Airbus, and De Havilland aircraft operate scheduled nonstop flights out of hubs in Manila, Cebu, Clark, and Davao to 33 destinations in the Philippines and 39 destinations in Asia, North America, Australia, and the Middle East. Known for its hallmark heartwarming and gracious Filipino service, PAL also supports the global economy through air cargo and charter services, while serving the travel needs of overseas Filipinos as well as businesspeople, tourists and families from all over the world.