PAL net profits land in the green as travel restrictions loosen in 2022

MANILA, Philippines — Flag carrier Philippine Airlines found itself in calm waters as its business surged in 2022, benefiting largely from relaxed mobility restrictions. 

In a disclosure sent to the Philippine Stock Exchange on Friday, PAL reported its total comprehensive income amounted to $196.9 million in 2022. Operating income hit $297.2 million, the first positive full-year figure for the airline since 2019.

Consolidated revenues grew 112% to $2.57 billion in 2022, as the Tan-led airline noted it managed to maintain an upbeat performance throughout the past year. 

“Philippine Airlines continues to be on a journey of recovery and renewal, and we will make good use of our resources to improve our services for the benefit of our valued customers,” said PAL president & chief operating officer Stanley K. Ng. 

For context, PAL’s business swam choppy waters for most of the pandemic as it faced bankruptcy while mobility restrictions held off air travel. The company found some relief as its debt was restructured, which resulted in a $1.4 billion gain in 2021. 

PAL recorded an operating loss of $98.1 million in 2021.

The airline indicated an average passenger load factor of 72% in 2022, which they said was markedly higher than the 42.6% figure in  the preceding year. 

As it is, PAL reckoned it flew 9.3 million passengers in the past year, which marked a four-fold increase since 2021, due in part to pent-up consumer spending. 

This and expensive fuel prices pushed operating expenses up. In 2022, expenses rose 73.3% year-on-year to $2.27 billion. 

To this end, the flag carrier added new flights to its network. PAL now carries flights to and from Perth in Australia and reopened routes across mainland China. 

Shares in PAL Holdings, the airline's parent firm, ended flat on the last trading day of March. — Ramon Royandoyan