PAL Nets P3.9B in Profit for Q1 2025

• • Delivers 14th consecutive quarterly positive income
  • Carried 4.1 million passengers, up 5% year-on-year
  • Expanding to new routes from Cebu to Ho Chi Minh, Manila to Da Nang
  • Completes its 10th IATA Operational Safety Audit renewal

Philippine Airlines, Inc. (PAL) maintained its streak of continued profitability with a net income of USD 77 Million (PHP 3.9 Billion) in the first quarter of 2025, the airline’s 14th consecutive positive quarter since the pandemic.

The Philippine flag carrier generated USD 817 M (PHP 47.3 B) in revenues for Q1 2025, a 1% decline driven by 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 vs. Q1 2024 to 4.1 million passengers while PAL’s cargo business carried 52.6M kgs. of cargo while operating over 28,000 flights across its international and domestic network.  PAL logged an operating income of USD 75 Million (PHP 4.4 Billion) for the quarter.
Capacity offerings remained steady for Q1, in the context of a calibrated multi-year expansion program. PAL launched routes from Manila to Cauayan and from Cebu to Catarman this quarter, 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 USD 741 M (PHP 43.0 B), 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 that occurred in 2023 and 2024.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were USD 175M, 3% higher than in 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 USD862M (PHP 49.3B) driven by the sustained earnings of the Company.

“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 safety and reliability as our topmost concerns,” said Captain Stanley K. Ng, PAL President & Chief Operating Officer.

On top of positive earnings and leadership movements, PAL along with affiliate carrier PAL Express notched a recent safety milestone by respectively completing their IATA Operational Safety Audit (IOSA) Renewal Risk Based Audit, confirming the PAL Group’s conformance with the highest international aviation safety standards.  PAL completed ten consecutive successful IATA audit renewals since its first IOSA registration in 2006, while PAL Express marked six successful IOSA renewals since its original registration in 2014.