Philippine Airlines (PAL) continued its upward trajectory in the first half of 2025, reporting a 12% increase in net income driven by higher passenger traffic and lower fuel costs.
From January to June, the flag carrier posted a net income of $137 million, rising from $122 million during the same period last year. Operating income reached $146 million. The second quarter played a major role in the improved performance, with PAL’s earnings for the April-June period jumping by 48% to $60 million compared to $41 million a year earlier.
This also marked PAL’s 15th consecutive profitable quarter, highlighting the airline’s strong recovery since the pandemic.
Passenger volume was a key driver of growth, as PAL flew 4.4 million passengers in the second quarter—up by 9% year-on-year. Total passenger count for the first half hit 8.47 million across 57,598 flights. Revenues for the second quarter climbed 6% to $831 million, while cargo revenues rose by 13% to $17 million, with over 51,000 tons of goods transported.
Despite a 5% increase in operating expenses to $761 million—due to higher airport fees, rentals, and depreciation—PAL benefited from an 11% drop in fuel costs, thanks to easing global oil prices.
PAL President Richard Nuttall underscored the company’s strategic focus, saying, “To sustain our momentum in this dynamic operating environment, we will continue to focus on generating healthy revenues, maintaining financial discipline, sustaining operational integrity and providing the kind of exemplary travel experience that our customers deserve.”
The airline also reported that its operating cash flow adequately covered capital expenditures, which reached $300 million. Much of this went into predelivery payments for new aircraft and maintenance work.
As of end-June, PAL’s debt was trimmed to $1.39 billion from $1.57 billion. The airline currently operates a fleet of 79 aircraft and is preparing to add 22 more, including the Airbus A350-1000 expected to arrive later this year.
