Philippine Airlines (PAL) strengthened its profitability in 2022, helping it move beyond its restructuring and plan for fleet growth in 2023.
The carrier reported a comprehensive profit of $196.9 million for 2022. This was actually down from the $1.2 billion comprehensive profit in 2021, although the 2021 figure was inflated by a $1.4 billion net gain from debt restructuring.
PAL’s operating results give a clearer picture. The carrier reported an operating profit of $297.2 million in 2022, a turnaround from a $98.1 million operating loss in 2021.
The 2022 result represented its first annual operating profit since 2019. It was driven by a 112% increase in revenue, which was caused by rising demand as borders opened in most countries and travel restrictions eased.
The airline’s return to profitability has made PAL “even more determined to upgrade our fleet, build more connections to key markets and offer improved products and services,” PAL President and COO Stanley Ng said.
In March, PAL confirmed that it aims to reactivate another seven parked aircraft in 2023, which will raise its operational fleet to 75 aircraft. The total would presumably include the fleet of subsidiary PAL Express.
PAL is due to take delivery of 13 more Airbus A321s through 2026. The carrier signaled it is planning to place more orders, which may include A350-1000s. It currently operates two A350-900s.
Fleet numbers are expected to return to 2019 levels in 2027 or 2028.
The carrier achieved an average passenger load factor of 72% in 2022, up by about 30 points from 2021. Operating costs rose by $960.3 million year-on-year to a total of $2.3 billion. The increase was due to higher fuel costs and increased operations.
PAL previously said it is optimistic about recording another profit in 2023, and said that results were positive for the first quarter. The carrier has continued to reopen more routes in 2023, including multiple routes to mainland China. The airline also launched new service between Manila and Perth, Australia on March 27.
