PAL Booked US$135 Million Net in 1st Quarter

 12 May 2023


Flag carrier Philippine Airlines (PAL) on Friday disclosed that it booked an operating income of $ 135.2 million or around P 7.4 billion in the first quarter of 2023.


PAL said this was a substantial improvement from the $33.8 million P1.7 billion logged by PAL in the first quarter of 2022.

The airline also said that its total comprehensive income hit $ 108.2 million or P5.9 billion during the period.

"The positive financial performance reflects the continuing strength of the recovery of air travel," PAL said. 

According to the airline, gross revenues hit $ 776.9 million or around P42.6 billion in the first quarter of 2023, which represented a 66.5 percent improvement from the same period in 2022, driven by a 156.2 percent increase in the number of passengers carried on PAL’s global network, the airline said. 

PAL Signs MOU for 9 A35Ks

Toulouse, 10 May 2023 – Philippine Airlines (PAL) has signed a Memorandum of Understanding (MoU) with Airbus in a deal worth over US$3 billion for the purchase of nine A350-1000s for delivery beginning on the 4th quarter (October, December) of 2025 until 2027. 

Under the Philippine carrier’s Ultra Long Haul Fleet project, the A350-1000 will be operated on non-stop services from Manila to North America, including to the East Coast of the US and Canada, replacing the Boeing 777-300ERs. (See our story here on why A35K is the next big thing for PAL)

The new aircraft will join two A350-900s already in service at the airline and currently flying to destinations in North America, Asia and Australia. PAL was forced to subleased four of its A350-900
ordered from Airbus to German Carrier Lufthansa for six (6) years, a result of its Chapter 11 bankruptcy protection which it exited in December 2021.

As with the A350-900, the PAL A350-1000s will be configured in a premium layout with separate Business Class, Premium Economy and Economy Class cabins. They will be powered by Rolls Royce Trent XWB-97.


The MOU also covers purchase rights on three (3) additional A350-1000s by 2028 for future expansion to new long-haul destinations.  

PAL did not disclosed the deal with Airbus, but listings on Axon Aviation, a London-based aircraft sales and leasing company, showed each brand new A350-1000 jets together with its pair of Rolls Royce engines and interior amenities is valued at $355.7 million, bringing the airline’s total investment to over US$3 billion. Airbus stop publishing lists price in 2019.



Captain Stanley K. Ng, President and Chief Operating Officer of Philippine Airlines, said that the range of the A350-1000 would enable the airline to fly non-stop transpacific and transpolar routes in both directions all year. 

These will include some of the longest commercial flights in the world, such as those linking the Philippines with New York and Toronto. 

"With an expanded A350 fleet, PAL will have the ability to once again provide a direct link from the Philippines to Europe," Ng said.

“The A350-1000 combines greater range capability with the higher capacity we need to serve future demand. It’s the perfect aircraft to enable PAL to meet its expansion plans in a sustainable way, while offering passengers the highest levels of onboard comfort. We are committed to offering our passengers the best possible travel experience, and these state-of-the-art aircraft will enable us to do just that as we carry out our mission to connect the world, and grow trade and tourism.” He adds.

Christian Scherer, Airbus Chief Commercial Officer, said: “Flying passengers farther and in greater comfort, the A350 brings a step-change in fuel efficiency and an immediate significant contribution to reduced emissions. These are the attributes that have made the A350 the choice of leading airlines worldwide. We look forward to working closely with our long-standing customer Philippine Airlines as it moves forward with its long haul fleet modernisation programme.”

The A350 is the world’s most modern and efficient widebody aircraft and has set new standards for intercontinental travel. It offers the longest range capability of any commercial airliner in production today and is capable of flying 8,700 nautical miles or 16,100 kilometres non-stop.

At the end of April 2023, the A350 Family had won 928 firm orders from 54 customers worldwide, making it one of the most successful wide-body aircraft ever. Some 530 aircraft are currently in the fleets of 40 airlines, flying primarily on long haul routes.

Philippine Airlines operates various Airbus types on its full service network. In addition to the A350 on long-haul intercontinental routes, PAL flies A330-300s on services to the Middle East, Australia and various points in Asia. The Philippine flag carrier also operates a fleet of A320 and A321 single aisle aircraft on its extensive domestic and regional network out of hubs in Manila and Cebu.

The MOU signed by Philippine Airlines and Airbus is not yet a final order, and aircraft type and quantity may change according to future negotiations as both fine-tune the contractual details which can take weeks or months to complete.

PAL is expected to operate a fleet of 15 Airbus A350s by 2028, with six -900s and nine -1000, exclusive of purchase rights to be acquired at a later date. 


 

Philippine Airspace To Be Close on May 17


2 May 2023

Department of Transportation (DOTr) announced Tuesday that the country’s airspace will be shut down for six hours on May 17 for maintenance schedule of its navigational equipment.

DOTr said the shutdown to Philippine Airspace will allow it to replace an uninterruptible power supply (UPS) unit of the Air Traffic Management (ATM) system installed at the Civil Aviation Authority of the Philippines complex in Pasay City.

The closure of the Philippine airspace will begin at 12 midnight and to end at 6 a.m.

Ninoy Aquino International Airport and operating airlines were notified in advance of the scheduled disruptions, and would operate early or delayed flights for this maintenance schedule.

NAIA was recently advised by the CAAP that the replacement of the UPS may take shorter than expected.

“These are all proactive efforts to, of course, make sure that the CNS/ATM (Communication, Navigation and Surveillance/Air Traffic Management) is reliable as an offshoot of what happened this year,”MIAA Senior Assistant General Manager Bryan Co said in a news conference this afternoon.

Co said MIAA, CAAP, and airport authorities across the country as well as various operating airlines will also be meeting Wednesday morning to discuss plans for the shutdown.

The MIAA is asking airlines to step up in communicating the shutdown to passengers who will be affected as their will be travel delays affecting their plans.