Philippine Airlines (PAL) today announced robust financial results for the second quarter of 2025, marking its 15th consecutive profitable quarter. This sustained performance underscores the airline’s resilience as a full-service carrier poised for significant sustainable growth.
The Philippine flag carrier posted a net income of US$60 million for Q2 2025, a substantial 48% increase year-over-year. This growth was primarily fueled by higher passenger volumes. Total revenues for the quarter reached USD 831 million, up 6% from the same period last year, while operating income rose to US$71 million, a 10% improvement from Q2 2024.
“As we pursue strong financial results, we remain committed to earning the trust of our valued customers through excellence, service quality, and true Filipino hospitality on every PAL journey,” said Richard Nuttall, President of Philippine Airlines. “To sustain our momentum in this dynamic operating environment, we will continue to focus on generating healthy revenues, maintaining financial discipline, sustaining operational integrity, and providing the kind of exemplary travel experience that our customers deserve.”
PAL transported 4.4 million passengers in Q2 2025, a 9% increase from last year, despite revenue growth being tempered by softening international yields. Cargo revenues also saw an increase of USD 2 million, with the airline carrying 51,200 tons, a 13% rise. Overall, PAL operated 29,584 flights across its extensive international and domestic networks, a 5% increase year-over-year.
Operating expenses for the quarter increased by 5% to USD 761 million, attributed to higher airport and rental charges, third-party contract costs, and depreciation. This was partially offset by an 11% reduction in fuel expense, reflecting lower global fuel prices.
PAL’s balance sheet remains robust. As of June 30, 2025, the airline reported cash and cash equivalents of USD 455 million, total assets of USD 3.8 billion, and total liabilities of USD 2.9 billion. Cash from operations sufficiently covered its capital expenditures in the first six months, amounting to USD 300 million, which was invested in pre-delivery payments for aircraft on order and major aircraft maintenance activities. Total debt and long-term financial obligations have been reduced to USD 1.39 billion from USD 1.57 billion as of June 30, 2024. Total equity stands at USD 922 million as of June 30, 2025, up from USD 785 million recorded at the end of 2024. PAL’s strong financial position is set to support a calibrated growth plan aimed at delivering sustainable financial results in the years ahead.
The solid second-quarter performance contributed to a net income of USD 137 million for the first half of 2025, up 12% from last year, and an operating income of USD 146 million. In the first six months of 2025, PAL operated 57,598 flights and transported 8.47 million passengers, representing increases of 2% and 7% respectively year-on-year.
PAL also significantly improved its on-time performance (OTP) to 81.23% systemwide from January to June 2025, compared to 78.66% last year. The airline was honored as the Asia-Pacific region’s most punctual airline in April 2025, following two consecutive years in the top ten rankings tracked by international aviation analytics firm Cirium.
Looking ahead, the Philippine flag carrier is preparing to introduce 22 brand-new aircraft in the coming years, starting with its first Airbus A350-1000, a 382-seater long-range jetliner, which will join the PAL fleet before the end of 2025. Eight more A350-1000s and 13 A321neo regional aircraft are slated for delivery from 2026 onwards. Additionally, PAL expects delivery of the first of 18 retrofitted Airbus A321ceo aircraft, featuring upgraded cabins, enhanced in-flight entertainment systems, and Wi-Fi connectivity, in October 2025.
