PAL Overperforms Revenue

Set to Record $2.6 Billion Revenue

17 October 2022

Flag carrier Philippine Airlines (PAL) has reported better than revised performance that it is revising again for the second time its revenue  target to $2.6 billion for 2022 after reaching its previous $2 billion revenue goal as early as October.

“We exceeded our target already so it’s quite good. Of course, we forecast another target, for the year it’s $2.6 billion revenue,” PAL Holdings, Inc. President and Chief Operating Officer Stanley K. Ng said. 

PAL earlier projected revised yearend revenue of at least $2.2 billion gross revenue in July this year. It is poised to earn net comprehensive income of $150 million, after earning $70 million in the first half.

In the first half of this year, the carrier generated $1.1 billion in revenues representing a 258% growth in passenger revenues and 31% growth in cargo revenues from the same period last year.

The Lost Routes
Destinations such as New Zealand, London, and Sapporo are still those not being served by the flag carrier after returning more than 20 aircraft to its lessor.

“We don’t have that airplanes to fly to those destinations right now,” Mr. Ng said.

He added that if things improve for the airline, it expects to start servicing the three destinations by next year.

PAL returned to lessors 5 A330-300s and subleases 4 A350-900s to German Airline Lufthansa until 2028.

Re-Fleeting
With better than projected revenue performances, the airline is looking to funding its much delayed Long Haul re-fleeting program that was put on hold in 2019.

Ng said decision for that undertaking is scheduled next year in addition to adding more long haul planes in the short term to fill the gap in order to provide better customer experience, as the airline is currently short of those planes.

“But the metal, the hardware, the aircraft it will take some time but we are in the process of deciding also,” Mr. Ng said, referring to delivery schedule of this new planes.

“Some are getting a little bit old in terms of aesthetic but in terms of engines and safety it’s perfect but of course, people right now are more demanding of the seats,” Mr. Ng said.

Aircraft orders from manufacturers usually take about 4-5 years before they are delivered to customers.

Meanwhile, PAL has returned 6 more A320 aircraft to lessors as their leases expire this year, reducing further their operating fleet to 70 by end of this year.