10 August 2023
Flag carrier Philippine Airlines (PAL) announced Wednesday that it has exceeded its comprehensive Net Income for 2022 this year, according to the disclosure of its President and Chief Operating Officer.
Airline President and COO Captain Stanley Ng said they are expecting increased profits in 2023, bigger than what was reported in 2022.
"Only the first half of this year, we already exceeded the net income of last year," he said.
PAL registered an operating income of US$ 125 Million (P6.6 Billion), and net comprehensive income of US$ 71 Million (P4.2 Billion) for the first half of 2022.
This year PAL reported a net income of US$ 250 million (P13.6 billion) and an operating income of US$ 314 million (P17.4 billion) for the initial half of the year.
Ng said PAL has since seen strong growth since the second half of 2022.
"Since the second half of last year, we’ve seen significant recovery. Like the passenger demand is growing stronger than ever, and initially we expected some slowdown, this year, early. However, it didn’t happen," he said.
"So we have extended some of the leases that we can. And try to bring, reactivate some of the planes to actually cover the demand today," he noted.
The COO said they are also refurbishing old planes to stay competitive without elaborating the type of aircraft.
The airline previously extended leases of its two Boeing 777s for another three years, and is looking for another two frames to cover demand of passengers as it awaits delivery of its nine new long haul plane in 2025.
"We ordered new Airbus 350-1000s, that should be an addition to our fleet, and possible replace some of the older fleet as well," Ng said.
PAL earlier ordered nine high gross weight variant of the A350-1000 with two options, for delivery starting last quarter of 2025.
The airline is also improving its product services as it opens super Mabuhay Lounge at NAIA Terminal 1 this October. It earlier opened Domestic Mabuhay Lounge in Mactan Cebu, and would open Mabuhay Lounges in Puerto Princesa, Panglao, Bacolod and General Santos soon.
"Were also revamping our Mabuhay Miles Program so that its easier for customers or passengers to use their miles" says Ng.
The new Mabuhay Miles Program will be launch in September.
Ng also revealed why PAL tickets remained high as it was dependent upon demand.
"Today, demand is so high and capacity is so low. If you book early you can still avail of the lower fare"
The airline expects ticket prices to stabilize next year as more capacity is added to the market.
Captain Ng said he welcomes competition to the North American market, referring to the entry of United Airlines to the Philippines for direct flights to San Francisco beginning October 27.
Captain Ng said they have a healthy cash flow today but would invest this money for new aircraft aqcquisitions and technology.
"We are focusing on those things, but right now we are spending it on lounges, and refurbishing old planes," Ng remarks.
I really wish PAL will reconsider 9-abreast 3-3-3 layout for A350-1000 economy class instead of the reported 10-abreast 3-4-3 layout. Considering that this is an ultra long haul plane. They have done so on the A350-900, at 18" seat width and at 33" seat pitch. Even if Airbus has done modifications to allow 3-4-3 in A350 Economy, the cabin is still not as wide as the 777X to allow 3-4-3 at a comfortable 18" seat width. If only PAL chose the 777X, then 3-4-3 wont be a problem. I know that Filipinos are price-sensitive consumers, but they are wrong in assuming that Filipinos wouldn't care about the tighter seats and it will be just a matter of time before they notice this compared to competitors especially if full service competitors will offer attractive prices. PAL should not commit the same mistake on the A330-300HGW delivered in 2013.
ReplyDeleteI hope too it, though I do have some doubts it is final in the fourms a user thier said it made sense from an economic point of view and also factoring congestion in MNL. As it seem PAL hasn't yet welcome the idea of moving to NMIA at Bulacan yet! But I do hope LT and SMC do eventually resolve their differences in the end. As for the A35K I'm cautiously optimistic, though it seem the LOPA hasn't been finalized at this time so best to wait for further development like seat manufacturers and interiors to be announced in the following months and years prior to the delivery of the first aircraft!
DeleteEven if the A350 cabin has been improved to allow 3-4-3 in Economy, it is still not as wide as the current 777's. The seats will be tighter, it's only approximately 17" width and might even be less than that, than the 777's seats in 3-4-3 which are in 17" width. PAL might become the first full service airline to adopt 3-4-3 economy in A350.
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