Philippine Airlines generates US$1.6 billion in revenues for first half of 2024

Philippine Airlines (PAL) released its interim report for 2024, showing $1.6 billion in total consolidated revenues.

The airline noted that it saw higher volumes in terms of passengers, cargo, and ancillary services.

The airline announced a net income of $122 million, with operating income at $182 million for the period encompassing January to June 2024. This development is in line with expectations amidst normalising market conditions against the erratic travel demand surges seen last year.

Capital expenditures, mostly going to aircraft purchases, rose to $157 million. Other expenditures during the period were general maintenance, cabin upgrades to boost operational integrity, as well as a well-differentiated quality service for passengers.

Expansion and growth

PAL expanded flights by 11 percent, carrying 7.9 million passengers throughout its domestic and international route network. This is approximately 13 percent higher than what was seen in the first half of 2023.

The airline’s expansion aligns with an overall growth in air travel post-pandemic. This can be seen in the 13 percent growth in passenger volume at Manila’s Ninoy Aquino International Airport (NAIA), as well as PAL’s Mabuhay Miles lifestyle programme’s latest milestone of hitting six million members.

Philippine Airlines (PAL) released its interim report for 2024, showing $1.6 billion in total consolidated revenues.

The airline noted that it saw higher volumes in terms of passengers, cargo, and ancillary services throughout the first six months of this year.

Second quarter performance

For the second quarter of 2024, the airline generated revenues of $787 million, a 4 percent decrease from what was seen in the second quarter of last year. 

This reflects yield pressures brought about by the return of more capacity to the market. 

Higher costs related to increased flying and maintenance work during the second quarter negatively impacted operating income. PAL reported that its operational income for Q2-2024 was $64 million with net income at $41 million.

PAL president and chief operating officer Stanley K Ng said of the airline’s performance in the first half of the year: “As the industry adjusts to a re-balancing between demand and capacity, and continues to face cost and supply chain challenges, we are implementing a disciplined investment plan to upgrade our fleet and continue our digital transformation so that we can serve our passengers better.”

Lucio C Tan III, president and chief operating officer of PAL Holdings Inc, added: “Philippine Airlines remains on track in its transformative growth strategy as we deliver a more efficient airline offering quality service, to fulfill our mandate as the Philippines’ flag carrier and only full-service airline with the largest network.”