Philippine Airlines, Inc. (PAL) maintained its streak of profitability, reporting a net income of PHP 3.9 billion in the first quarter of 2025, marking the airline’s 14th consecutive positive quarter since the pandemic.
The Philippine flag carrier generated PHP 47.3 billion in revenues for Q1 2025, a 1% decline attributed to lower yields and the shift in the peak Holy Week traffic period from March 2024 to April this year.
Passenger carriage registered a 5% increase compared to Q1 2024, totaling 4.1 million passengers, while PAL’s cargo business transported 52.6M kgs. of cargo while operating over 28,000 flights across its international and domestic network.
PAL recorded an operating income of PHP 4.4 billion for the quarter. Capacity offerings remained steady for Q1, in the context of a calibrated multi-year expansion program.
This quarter, PAL launched routes from Manila to Cauayan and from Cebu to Catarman, and announced new routes from Cebu to Ho Chi Minh and from Manila to Danang, commencing in May and July, respectively.
Operating expenses for the quarter increased by 5% year-on-year to PHP 43.0 billion, reflecting higher airport charges, third-party contract costs, and depreciation, offsetting lower fuel costs.
The quarterly results also included the recognition of credits issued to PAL by a vendor as special support compensation for grounded aircraft incidents in 2023 and 2024.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached USD 175M, 3% higher than the previous quarter, Q4 2024, but 11% below the Q1 2024 level.
EBITDA margins remained healthy at 21%. PAL’s balance sheet continued to strengthen, with total long-term obligations decreasing to USD 1.37B (PHP 78.3B), while total equity improved to PHP 49.3 billion, driven by the Company’s sustained earnings.
“We are greatly encouraged by the support of our valued customers who choose to fly on Philippine Airlines’ global network, and for whom we are investing in progressive product and service improvements, fleet renewal efforts and digital innovations, with Corporate Affairs Department, G/F Lucio K. Tan, Jr. Center, PAL Gate 5-A Andrews Avenue, Pasay City, Philippines 1300 safety and reliability as our topmost concerns,” said Captain Stanley K. Ng, PAL President & Chief Operating Officer.
In addition to positive earnings and leadership developments, PAL, along with affiliate carrier PAL Express, achieved a notable safety milestone by completing their IATA Operational Safety Audit (IOSA) Renewal Risk-Based Audit, confirming the PAL Group’s adherence to the highest international aviation safety standards.
PAL has completed ten consecutive IATA audit renewals since its first IOSA registration in 2006, while PAL Express has marked six successful IOSA renewals since its original registration in 2014. 2014.
