PAL MARKS NET PROFITS FOR 2022, COMMITS TO IMPROVE SERVICES AND SUSTAIN GLOBAL LINKS
March 31, 2023
Philippine Airlines (PAL) ended 2022 on a high note, reporting an operating income of USD 297.2 million and a total comprehensive income of USD 196.9 million for the year ending December 31, 2022.
This was the first positive full-year operating income logged by the Philippine flag carrier since 2019, as consolidated revenues soared by 112% to USD 2.57 billion in 2022 from the previous year's USD 1.21 billion in revenues.
PAL's positive performance was consistent for all four quarters of 2022 and was largely a result of rising demand in air travel that followed the easing of travel restrictions and the reopening of borders in most countries.
"We are very grateful for the support of our customers that has enabled us to achieve this positive result amidst a challenging 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. We are even more determined to upgrade our fleet, build more connections to key markets and offer improved products and services,” said PAL President & COO Captain Stanley K. Ng.
“We also thank our shareholders, our service partners, and our dedicated employee work force whose tireless efforts have led to continuing progress in our recovery journey. We embrace our mission of service and remain committed to work with government and industry partners to help boost the Philippines’ economic and tourism development goals,” added Captain Ng.
PAL flights achieved an average passenger load factor of 72% for 2022, nearly thirty percentage points higher than the previous year’s 42.6% load factor.
The flag carrier flew a total of 9.3 million passengers in 2022, comprising the operations of both the PAL mainline network as well as PAL Express. This represents an increase of 214% from the 2021 carriage level.
Total operating expenses for 2022 amounted to USD 2.27 billion, an increase of USD 960.3 million over 2021's USD 1.31 billion total, due to the increase in the number of flights operated, coupled with the impact of rising fuel prices in the world market. Jet fuel costs represent the highest expense item for the airline.
PAL's total comprehensive income of USD 196.9 million for 2022 marks another milestone for its recovery. The airline also registered a positive financial performance in 2021 after year-on-year losses since 2016. It recorded a total comprehensive income of USD 1.21 billion in 2021, which included a USD 1.44 billion net gain from debt restructuring. However, the airline registered an operating loss of USD 98.1 million in 2021, which reflected the severe pandemic-era travel restrictions and operating conditions prevailing that year.
The Philippine flag carrier continued to expand its route network in 2022, adding flights to most of its overseas destinations in North America, Asia, Australia and the Middle East, while pioneering economy-boosting and tourism-generating domestic routes such as Cebu- Baguio, Cebu- Borongan and Cotabato- Tawi-Tawi.
For 2023 so far, PAL has inaugurated a historic Manila-Perth nonstop link while reopening multiple routes between the Philippines and points in mainland China. In addition to an extensive domestic network anchored on its gateway hubs in Manila, Cebu and Davao, PAL is the only airline operating nonstop flights linking the Philippines to the U.S. and Canada, along with the largest network of flights from Manila to multiple cities in the Middle East, Japan and Australia.