Philippine Airlines (PAL) said Wednesday its net income grew 6.1 percent to $160.4 million in 2025 despite a challenging year for the global aviation industry.
The Lucio Tan-led airline reported total revenues of $3.22 billion, up 3 percent from $3.13 billion in 2024, supported by solid performance across its core businesses.
The passenger business remained the primary revenue driver, generating $2.73 billion. This was underpinned by sustained travel demand as PAL carried 16.3 million passengers during the year, a 4.3 percent increase from 2024.
PAL increased its capacity, measured in available seat kilometers (ASKs), by 3.3 percent to 46.19 billion in 2025. Passenger load factor was slightly down at 78.7 percent, compared to 79.1 percent in 2024.
Ancillary revenues saw strong growth, rising 24.9 percent to $301.2 million, mainly due to higher volumes of seat upgrades. Ancillary services now represent 9.4 percent of PAL’s total revenues.
The cargo business posted a 3.7 percent increase in revenues, rising to $165 million from $159.7 million in 2024. This growth was driven by a 1.8 percent increase in cargo volume to 187.5 million kilograms. Cargo revenues account for 5.2 percent of the airline’s consolidated revenues.
Total operating expenses increased 6.3 percent to almost $3 billion, primarily due to more flights, higher maintenance costs and structural cost increases in Manila.
In 2025, PAL continued its fleet revitalization program by retrofitting three Airbus A321ceo aircraft and taking delivery of two additional A320-200s. On Dec. 21, the airline marked a milestone with the arrival of its first Airbus A350-1000, making PAL the first carrier in Southeast Asia to operate the next-generation widebody aircraft.
“Our 2025 results validate PAL’s successful transition from post-pandemic recovery to sustainable, long-term growth,” said Richard Nuttall, PAL president. “Despite an industry-wide softening of passenger yields, we successfully defended our top line through disciplined revenue and network management.”
Nuttall added that the airline is aggressively driving internal efficiencies to navigate cost pressures while investing in its on-time performance (OTP).
As PAL enters 2026, the flag carrier remains focused on operational reliability and service excellence to support long-term stability in a dynamic global environment.
