Philippine Airlines Reports a 48% Increase in Net Income in Q2 2025, Marking its 15th Straight Profitable Quarter

Philippine Airlines (PAL) reported strong financial results for the second quarter of 2025, marking the airline’s 15th consecutive profitable quarter and reinforcing its resiliency as a full-service carrier with solid prospects for sustainable growth in the near future. 

The Philippine flag carrier posted a net income of USD 60 million for Q2 2025, a 48% increase year-over-year, primarily driven by higher passenger volumes. PAL’s total revenues for the quarter reached USD 831 million, up 6% from the same period last year, while operating income rose to USD 71 million, a 10% improvement from Q2 2024

“As we pursue strong financial results, we remain committed to earning the trust of our valued customers through excellence, service quality, and true Filipino hospitality on every PAL journey,” said Richard Nuttall, President of Philippine Airlines. “To sustain our momentum in this dynamic operating environment, we will continue to focus on generating healthy revenues, maintaining financial discipline, sustaining operational integrity and providing the kind of exemplary travel experience that our customers deserve.” 

PAL carried 4.4 million passengers in Q2 2025, a 9% increase from last year, although revenue growth was tempered by softening international yields. Cargo revenues grew by USD 2 million as the airline carried 51,200 tons, a 13% increase. Overall, PAL operated 29,584 flights on its extensive international and domestic routes, 5% more than last year.

The airline’s operating expenses for the quarter increased by 5% to USD 761 million, attributed to higher airport and rental charges, third-party contract costs and depreciation. This was partly offset by an 11% reduction in fuel expense, reflecting lower global fuel prices.

PAL’s balance sheet remained healthy. As of June 30, 2025, the airline reported cash and cash equivalents of USD 455 million, total assets of USD 3.8 billion and total liabilities of USD 2.9 billion. Cash from operations sufficiently covered its capital expenditures in the first six months amounting to USD 300 million. PAL’s capex was invested in the pre delivery payments for aircraft on order and major aircraft maintenance activities. Total debt and long-term financial obligations have been reduced to USD 1.39 billion from USD 1.57 billion as of June 30, 2024. Total equity is at USD 922 million as of June 30, 2025, up from USD 785 million recorded at the end of 2024. PAL’s balance sheet and cash flows are geared up to support a calibrated growth plan that will enable the Company to deliver sustainable financial results in the years ahead.

The solid second-quarter performance contributed to a net income of USD 137 million for the first half of 2025, up 12% from last year, and an operating income of USD 146 million.

PAL operated 57,598 flights and transported 8.47 million passengers in the first six months of 2025, up by 2% and 7% respectively year-on-year.

PAL succeeded in improving its on-time performance to 81.23% systemwide from January to June 2025, vs. 78.66% last year, and was honored as the Asia-Pacific region’s most punctual airline in April 2025 after two consecutive years in the top ten rankings tracked by the international aviation analytics firm Cirium.

The Philippine flag carrier is now preparing to introduce 22 brand-new aircraft in the coming years, beginning with its first Airbus A350-1000, a 382-seater long-range jetliner that will join the PAL fleet before the end of 2025. Eight more A350-1000s and 13 A321neo regional aircraft are slated for delivery from 2026 onwards. It also expects delivery of the first of 18 retrofitted Airbus A321ceo aircraft with upgraded cabins, enhanced in-flight entertainment systems and Wi-Fi connectivity in October 2025.