Philippine Airlines back to profitability in Q1 with ₱1.2B income

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Metro Manila (CNN Philippines, May 14) — Philippine Airlines began 2022 on a strong note as it registered a net income of ₱1.2 billion this January to March — marking its return to profitability.

"The last time that PAL registered positive 1st quarter results was in 2016," said the flag carrier in a statement on Friday.

PAL posted revenues of ₱24 billion the first three months of the year driven by year-on-year growths of 201% in passenger revenues and 72% in cargo revenues.

The airline attributed it to the "stronger" rebound in travel volumes with the reopening of travel borders in the Philippines and key markets in Asia, Australia, and North America, along with the cargo segment maintaining its strength.

However, PAL also saw operating expenses surge 50% to ₱22.3 billion due to higher fuel prices and more flights in operation.

Capt. Stanley Ng, president and chief operating officer of PAL, welcomed the latest figures but not without recognizing challenges that lie ahead. Among them are rising fuel costs, uncertainty over the Ukraine-Russia conflict, and "incomplete recovery" in travel markets as some Asian markets have yet to fully reopen borders.

"To protect the gains we’ve made so far, we must be resolute in exercising fiscal discipline and faithfully carrying out our restructuring initiatives," said Ng.

PAL completed its restructuring plan last year, propelling its return to profitability

The company sees its return to pre-COVID-19 levels for its domestic network "within the second or third quarter of 2022."