PAL Reports a Solid Net Income of US$151.1 Million in 2024

Philippine Airlines (PAL) affirmed the continued progress of its corporate transformation journey with another positive financial result for 2024. ​PAL closed 2024 with a solid net income of USD 151.1M (P10.22B), achieving a 5% net margin that outpaced the global airline industry average of 3% tracked by the International Air Transport Association (IATA).  

The fourth quarter of 2024 showed an 8% increase in systemwide revenues to USD 790.2M, vs. USD 733.0M in the third quarter, even as operating income (USD 105.3M) and net income (USD 16.0M) increased by 296% and 19% respectively, vs. the operating income of USD 26.6M and net income of USD 13.4M realized in the preceding quarter. This marks PAL's 13th straight profitable quarter that reflects disciplined cost management, sustained passenger demand, and strategic network expansion, reinforcing its position as one of the region’s most resilient full-service air carriers.

PAL President and Chief Operating Officer Captain Stanley K. Ng said: “We are very pleased with the solid financial performance achieved by the Philippine Airlines team, an outcome of greater operational efficiency, improved schedule reliability, and more consistent service across our global network. In 2024, PAL operated 5% more flights while improving on-time-performance by 2% and schedule reliability by 4%. These gains contributed to a significant increase in customer satisfaction (CSAT) scores, which rose to 73%, and net promoter scores (NPS), which reached +43, both ranking among the strongest results we've delivered to date.”

PAL carried 15.6 million passengers in 2024, 6% higher than in 2023, while mounting a total of 110,867 flights systemwide, a 5% increase from the 105,294 flights operated in 2023. The calibrated expansion of PAL’s network included the launching of Manila-Seattle nonstop flights last October, PAL’s first new U.S. route in nine years, along with progressive increases in frequencies on various international and domestic routes.

The incremental growth in passenger carriages and solid financial performance came despite a general moderation of growth rates, inflationary strains and increased competition that put pressure on yields. PAL generated revenues of USD 3.13B (P179.67B), a 4% reduction from the USD 3.25B (P180.73B) logged in 2023. Passenger revenues declined by 6% from USD 2.87B to USD 2.70B, while cargo and ancillary revenues registered a healthy increase of 12% (to USD 159.7M) and 16% (to USD 271.7M), respectively.

Total operating expenses increased by 3% to USD 2.82B (P161.59B) from USD 2.75B (P152.99B) in 2023 due to higher lease costs and airport charges, although these were offset by lower fuel expenses and more effective cost-management measures. Fuel remains the largest cost item, representing 31% of revenues.

Operating income at USD 314.4M (P18.08B) was 37% below the 2023 level of USD 501.1M (P27.74B), reflecting the overall market moderation. Earnings before interest, taxes, depreciation and amortization (EBITDA) were USD 614.4M, vs. the USD 765.5M registered in 2023.

PAL incurred capital expenditures of USD 387.7M in 2024 largely for the purchase of its new aircraft and aircraft maintenance. The airline is also embarking on a number of digital transformation projects such as the implementation of a SalesForce Customer Relationship Management (CRM) platform, RAMCO Maintenance Information System and SAP’s S4Hana Enterprise Resource Planning system. This ongoing digital transformation is a key strategy for PAL to deliver personalized digital experiences across the customer journey.

“PAL’s financial discipline is critical in a very cyclical industry. Enabled by the gains we have made post-restructuring, we are making purposeful investments to improve our product and update our systems with the aim of delivering better service to our passengers more efficiently,” said Anna Bengzon, Chief Financial Officer of PAL.

As a result of the continued strong results of PAL, the company reported positive retained earnings of USD 29.2M (P9.11B) as at December 31, 2024 from a deficit of USD 116.4M in 2023. PAL also paid down debt and long-term obligations totaling USD 538.1M allowing its total long-term obligations to decrease to USD 1.39B.

PAL recently celebrated its 84th anniversary as Asia’s oldest operating airline by marking a number of service milestones. The airline landed in Cirium’s 2024 Top Ten list of  Most Punctual Airlines in the Asia-Pacific region for the second year in a row, advancing to seventh place in 2024 from eighth place in 2023. PAL likewise ranked second among the Top 10 Travel Brands in Southeast Asia for 2024, awarded for exceptional performance in the areas of customer service, purchasing experience and domestic brand recognition as the Preferred Airline of Choice for Filipino travelers.

The Philippine flag carrier is gearing up for the planned delivery of nine (9) Airbus A350-1000 long-range aircraft and thirteen (13) A321neo regional aircraft in coming years. Additionally, efforts are underway to reconfigure the A321ceo cabins and enhance WIFI and in-flight entertainment (IFE) systems.

As the Philippines' only full-service airline, PAL is focused on establishing new loyalty partnerships and building up its network of nonstop flights and inter-airline partnerships to enhance its competitiveness, connectivity and access to global markets.

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 Airbus, Boeing and De Havilland aircraft operate scheduled nonstop flights out of hubs in Manila, Cebu, Clark, and Davao to 31 destinations in the Philippines and 37 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.