Philippine Airlines (PAL) reported it ended 2022 with net profits and announced a commitment to improve services and sustain global links.
Philippine Airlines ‘A Journey of Recovery and Renewal’
Philippine Airlines reported ending 2022 with an operating income of over 297 million USD. It also reported a “total comprehensive income” of almost 197 million USD for the year.
The results mark the first year since 2019 the carrier has reported a positive full-year operating income.
Consolidated revenues increased by 112% and the removal of restrictions and strong travel demand were cited as the primary factors for the positive performance. Revenues increased from 1.21 billion USD in 2021 to 2.57 billion in 2022. The positive performance was reportedly consistent across each quarter of 2022.
The airline, based in Manila, flew 9.3 million passengers in 2022 – this also includes PAL’s subsidiary, PAL Express passengers. Passenger numbers increased 214% compared to 2021.
Load factors for 2022 were thirty percentage points higher than 2021, 72
PAL flights achieved an average passenger load factor of 72% for 2022, nearly thirty percentage points higher than the previous year’s 42.6% load factor.
Philippine Airlines President and Chief Operating Officer, Captain Stanley K. Ng said: “We are very grateful for the support of our customers that has enabled us to achieve this positive result amidst a challenging year.”
With the increase in flights and the increase in global fuel prices, the carrier saw a 73.3% increase in operating expenses. From 1.31 billion USD in 2021 to 2.27 billion USD in 2022. Fuel costs are reported as the highest expense for the airline.
After year-on-year losses since 2016, the airline sees two years of positive financial performance. 2021 was reported as positive income and finance from debt restructuring. However, the carrier saw a 98.1 million USD loss in 202 due to travel restrictions and other effects of the COVID-19 pandemic.
The press release announced the airline’s continued commitment to upgrading its fleet, expanding its network, and improving its product and service offerings.
In 2022, the carrier expanded its network to re-establish routes to North America, Asia, Australia, and the Middle East. This was done in line with travel restrictions easing in these nations.
It also expanded its domestic network by opening focus routes such as Cebu- Baguio, Cebu- Borongan, and Cotabato- Tawi-Tawi. Reportedly, these routes are key for the country’s economy and tourism industry.
So far in 2023, Philippine Airlines inaugurated a non-stop Manila-Perth route and also re-established flights between the Philippines and mainland China.
Philippine Airlines hails its network as the only operator connecting the Philippines and the United States and Canada with a direct flight.
“We also thank our shareholders, our service partners, and our dedicated employee workforce whose tireless efforts have led to continuing progress in our recovery journey,” added Captain Ng.
Forbes Magazine listed the airline as ‘one to watch’ in 2020, just before the pandemic. With the reported return to success, the airline appears keen to return to this trajectory.