Philippine Airlines (PAL) reported a 17% increase in net income for the first nine months of 2025, reaching $159 million (₱9 billion), boosted by strong passenger traffic, growing cargo demand, and the continued rollout of its long-term business initiatives.
In a disclosure, PAL Holdings Inc. said the flag carrier’s capital spending rose to $308 million from $265 million in the same period last year—a 16.2% jump that reflects the company’s ongoing investments in fleet modernization and route expansion.
The Lucio Tan-led airline posted a sharp 62% profit rise in the third quarter alone, totaling $22 million. Revenues for the July–September period climbed 3% to $755 million, driven by solid passenger and cargo operations. Passenger revenue grew by 1% to $632 million, while ancillary income surged by 25%—mainly due to higher seat upgrade and baggage fees. Cargo revenues were also up 2% to $42 million as freight volume increased.
Operating expenses in the third quarter rose by 2% to $719 million, mainly due to higher airport fees, third-party costs, and depreciation. Despite this, PAL’s earnings before interest, taxes, depreciation, and amortization (EBITDA) expanded by 28% to $140 million.
To accommodate growing travel demand, the airline has expanded international flights to Australia, Japan, and the United States ahead of the holiday season. PAL has also partnered with U.S. carrier Southwest Airlines to streamline transpacific travel through single-ticket journeys, while locally launching new routes such as Cebu–Calbayog.
“As we move forward with our strategic and long-term initiatives, we remain focused on delivering value to stakeholders, strengthening our financial position, elevating the passenger experience, and ensuring the highest standards of safety in all our operations,” said PAL President Richard Nuttall.
By the end of September, PAL had carried 3.8 million passengers across its domestic and international networks. The airline has begun deploying refurbished Airbus A321ceo aircraft—equipped with in-flight entertainment systems—to service routes to Tokyo, Osaka, Jakarta, Bali, and Guam before year-end.
