Philippine Airlines Logs First Profit Since 2019

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Philippine Airlines has undoubtedly ridden the pandemic rollercoaster these last few years, but has recovered strongly to post a 2022 profit, its first operating profit since 2019.

The Manila-based carrier reported an operating income of $297.2 million and a total comprehensive income of $196.9 million for 2022. On Friday, Philippine Airlines (PAL) said this was the first positive full-year operating income since 2019.

Profit due to increased demand

The profit was earned off consolidated revenue of $2.57 billion, a 112% jump from $1.21 billion in 2021. PAL said the gain came from a consistent performance across all quarters of the year and increased demand after travel restrictions were lifted. PAL President and chief operating officer, Captain Stanley Ng, said the airline was "very grateful for the support of our customers that has enabled us to achieve this positive result amidst a challenging year." He added:

"Philippine Airlines continues to be on a journey of recovery and renewal, and we will make good use of our resources to improve our services for the benefit of our valued customers.

"We are even more determined to upgrade our fleet, build more connections to key markets and offer improved products and services."

Philippine Airlines and its low-cost subsidiary, PAL Express, carried 9.3 million passengers last year, a 214% year-on-year increase. PAL flights recorded a passenger load factor of 72%, another significant gain from 43% in 2021. The airline has restored most of its pre-COVID network and operates to 32 destinations in the Philippines and 29 international ports in Asia, North America, Australia and the Middle East.

PAL has a fleet of 75 aircraft, which includes Airbus A350/A330/A320/A321 and A321neo aircraft. It also operates Boeing 777-300ERs and De Havilland 8-Q400 turboprops. PAL Express has a narrowbody fleet of Airbus A320s and De Havilland 8-Q400s for operations.

First nonstop to Perth

Last week Phillippine Airlines launched the first nonstop connection between the Philippines and Perth, the capital city of Western Australia. The nonstop flight from Manila's Ninoy Aquino International Airport to Perth Aiport takes less than seven hours, cutting around four to six hours from the existing routes that require stopovers.

Commanding the Airbus A321neo was Captain Stanley Ng, an experienced airline pilot who served as PAL's operations chief before taking on the chief operating officer role. The new route will operate thrice weekly on Monday, Thursday and Sunday, increasing PAL's Australian services to 21 per week. It flies daily from Manila to Sydney, five times per week to Melbourne and six times weekly to Brisbane (BNE).

Operational costs in 2022 increased due to the higher flying activity and the rising price of jet fuel. Total operating expenses reached $2.27 billion, nearly a billion dollars higher than the $1.31 billion recorded in 2021. Keen PAL watchers might be confused about the claim that this is the first profitable year since 2019, as the airline did post a comprehensive income of $1.21 billion in 2021.

That profit, which came after year-on-year losses since 2016, included a $1.44 billion net gain from debt restructuring. The airline recorded an operating loss of $98.1 million in 2021 due to the severe COVID-19 travel restrictions during the year.

Have you flown with Philippine Airlines between Manila and Australia? Please let us know in the comments.