Philippine Airlines Inc. said Wednesday it sustained profitability for two consecutive quarters, the first time since 2016, amid the recovery of the air travel industry and despite the lingering pandemic.
PAL said it registered P4.2 billion in net income in the first half, a turnaround from the net loss of P16.55 billion it incurred in the same period last year.
The country’s flag carrier said it was the first positive first and second quarter financial results since 2016.
PAL generated P58.1 billion in revenues, representing a 258-percent growth in passenger revenues and a 31 –percent increase in cargo revenues in the six-month period from a year ago. The airline recorded P18 billion in revenues in the first half of 2021.
Operating expenses reached P51.5 billion in the first half, which included P19.9 billion in fuel expenses, reflecting the impact of significantly higher fuel prices afflicting the aviation industry worldwide.
“We view the positive operating results for first half 2022 as a demonstration of the loyal support of our PAL customers, for which we are deeply grateful, and a validation of the efforts of our shareholders, management and personnel to rebuild our international and domestic network amidst the strengthening recovery of air travel,” PAL president and chief operating officer Capt. Stanley Ng said.
“We acknowledge tough challenges ahead, as various regions grapple with rising inflation, higher energy costs and economic uncertainties. So we will continue to be fiscally prudent as we mobilize our talents and resources to grow responsibly, in a way that helps boost tourism, supports overseas Filipinos and offers the best value to travelers and cargo shippers,” he said.
PAL, which received $505 million in fresh capital from its shareholder family, continues to restore more flights and routes with the easing of travel restrictions in the Philippines and other countries and the resulting comeback of business and leisure travel.
Ahead of other airlines, PAL invested in rebuilding its international network between the Philippines and North America, Australia and the Middle East, along with many parts of Asia.
This provided a lifeline for overseas Filipinos around the world, while helping to preserve the flow of trade and facilitate the revival of tourist travel that supports jobs and business activity in communities throughout the Philippines.
PAL, which has an extensive domestic network linked to gateways in Manila, Cebu and Davao, is the only airline operating nonstop flights from the Philippines to the US and Canada, along with the largest network of flights from Manila to multiple cities in the Middle East, Japan and Australia.
PAL also operates all-cargo flights to various local and overseas economic centers.
“As we continue to rebuild and grow, our top priority will always be the safety and health of our passengers and personnel,” Ng said.