PAL booked 62% profit growth in third quarter

Philippine Airlines (PAL) reported a 62-percent year-on-year increase in its third-quarter net income to $22 million, underscoring the flag carrier’s recovery driven by ongoing strategic transformation plans.

Total revenue for the three months ended Sept. 30 2025 climbed 3 percent to $755 million, supported by higher flight operations and a steady passenger volume of 3.8 million.

Passenger revenues grew 1 percent to $632 million, while ancillary income, from seat upgrades and baggage fees jumped 25 percent. Cargo revenues rose 2 percent to $42 million, mainly on higher volume.

Operating costs in the quarter climbed 2 percent to $719 million, led by higher airport third-party contract charges and depreciation. Earnings before interest tax depreciation and amortization (EBITDA) grew 28 percent to $140 million, with margins at 19 percent.

PAL secured the top on-time performance (OTP) ranking among Asia-Pacific carriers for the third consecutive month, from August to October this year, according to Cirium data.

The airline also received a four-star major rating from Airline Passenger Experience Association or APEX Four Star, an airline rating program based on certified passenger feedback.

“These accolades enhance PAL’s position as the nation’s flag carrier, affirming its reputation for reliability, customer service and operational excellence,” said PAL president Richard Nuttall.

“As we move forward with our strategic and long-term initiatives, we remain focused on delivering value to stakeholders, strengthening our financial position, elevating the passenger experience, and ensuring the highest standards of safety in all our operations,” said Nuttall.

The carrier’s ongoing fleet modernization is another cornerstone of its turnaround. PAL has begun rolling out refurbished Airbus A321ceo aircraft fitted with in-flight entertainment screens across all cabins, to be deployed on routes to Tokyo, Osaka, Jakarta, Bali and Guam by year-end.

For the first nine months of 2025, PAL’s net income reached $159 million, up 17 percent from a year earlier. Capital expenditures increased to $308 million in the first nine months of 2025 from $265 million in the same period last year.

PAL’s loyalty program, Mabuhay Miles, saw active membership increase by 15 percent compared to last year.

The program drove significant flight redemptions in August with its iconic Great Mabuhay Miles Getaway promo.

PAL and Philippine National Bank (PNB) renewed their co-branded PAL Mabuhay Miles PNB Mastercard suite of credit and debit cards on Oct. 15 2025.

The PNB–PAL Mabuhay Miles Mastercard remains the only product line in the Philippines offering a complete range of airline co-branded cards, the airline said.