Philippine Airlines Reports Strong Results for 2023

DALLAS — Philippine Airlines (PR) celebrated a record year in 2023, achieving its most robust financial performance ever. The Philippine flag carrier registered a net income of US$379 million (PHP 21 billion) in 2023, a significant 92% increase from the US$197 million (PHP 11 billion) recorded in 2022.

A robust increase in international and domestic operations and passenger traffic drove this positive performance.

Philippine Airlines operated 105,294 flights in 2023, a 36% increase from the 77,533 flights in 2022. This translates to an increase of more than 27,000 flights. PR carried 14.7 million passengers in 2023, a 58% increase from the 9.3 million passengers it served in 2022.

Financial Highlights Reflect Growth

The continued recovery of air travel post-pandemic led to a surge in passenger revenues by 37% from US$2.1 billion (PHP 114 billion) in 2022 to US$2.9 billion (PHP 160 billion) in 2023. Total net revenues, including cargo and ancillary revenues, also grew by 27% from US$2.6 billion (PHP 139 billion) to US$3.2 billion (PHP 181 billion).

While total operating expenses rose by 21% to US$2.7 billion (PHP 153 billion) from US$2.3 billion (PHP 123 billion) in 2022, primarily due to increased flight activity, profitability also improved.

Operating income grew by 69% to US$501 million (PHP 28 billion) from US$297 million (PHP 16 billion), and earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 43% to US$765 million (PHP 43 billion). Operating and EBITDA margins substantially improved to 15% and 24%, respectively, reflecting the increased scale and efficiency of PAL's operations.

Executive’s Gratitude, Continued Transformation

Philippine Airlines Holdings President & Chief Operating Officer Lucio C. Tan III expressed his gratitude to customers who entrusted the carrier with their travels and commended the dedication of the PAL Group workforce. He emphasized the importance of customer care and lauded the strategic approach of the management team in navigating industry challenges.

The carrier’s President and Chief Operating Officer, Captain Stanley K. Ng, acknowledged the need to build on the achievements and outlined plans for continuous improvement. Investments will strengthen the global and local network, upgrade the aircraft fleet, and introduce new and improved products and services.

“To preserve the gains we have achieved, we must not rest on our laurels. PAL’s corporate transformation continues – we are taking in new aircraft, retrofitting cabins of current aircraft, upgrading airport lounges, and introducing more product innovations to address our strategic, financial, and operational needs across all areas of our operations,” said President and Chief Operating Officer Captain Stanley K. Ng.

Key Highlights of 2023

In 2023, the Philippine flag carrier:

• Opened two new routes: Manila (MNL) - Perth (PER), Cebu (CEB) – Laoag (LAO)
• Relaunched 13 routes: MNL - Beijing (PEK), MNL - Shanghai (PVG), MNL - Xiamen (XMN), MNL - Jinjiang (JJN), MNL - Macau (MFM), CEB – Seoul (ICN), CEB - Kalibo (KLO), MNL - Tuguegarao (TUG), CEB - General Santos (GES), CEB - Ozamiz (OZM), CEB - Legazpi (LGP), Clark (CRK) - Busuanga (USU), CRK – Caticlan (MPH)
• Carried out fleet investments, including the purchase of nine Airbus A350-1000 long-range jetliners valued at more than USD 3.2 B (PHP 176.6 B)
• Constructed two brand new Mabuhay Lounges in MNL and CEB and refurbished other lounges across the Philippines
• Launched a new customer relations management system to provide more personalized passenger services

Philippine Airlines remains committed to its role as the Philippine flag carrier and looks forward to reaching new heights in the future.