PAL Earns $160-M in 2025

Philippine Airlines (PAL) maintained strong profitability in 2025, posting a net income of $160.4 million despite a more challenging global aviation environment.

PAL strengthened its regional standing after being recognized by Cirium as the most punctual airline in Asia Pacific. (Photo: Philippine Airlines)

Total revenues reached $3.22 billion, up 3.0% year-on-year from $3.13 billion in 2024, supported by solid performance across the airline’s core businesses.

The passenger segment remained the primary revenue driver, generating $2.73 billion, underpinned by sustained travel demand as PAL carried 16.3 million passengers during the year, a 4.3% increase from 2024.

PAL increased its capacity, measured in available seat kilometers (ASKs), by 3.3% to 46.19 billion in 2025 from 44.74 billion in the previous year.

Passenger load factor slightly declined from 79.1% in 2024 to 78.7% in 2025.

Ancillary revenues posted strong growth, rising 24.9% year-on-year to $301.2 million, mainly due to higher volumes of seat upgrades. These now account for 9.4% of PAL’s total revenues.

The cargo segment recorded a 3.7% increase in revenues, from $159.7 million in 2024 to $165.0 million in 2025, driven by a 1.8% rise in cargo volume from 184.1 million kilograms to 187.5 million kilograms.

Cargo revenues represent 5.2% of consolidated revenues.

Total operating expenses increased by 6.3% to nearly $3.0 billion, primarily due to a higher number of flights, increased maintenance costs, and other structural cost pressures that raised operating expenses in Manila.

Income from operations reached $228 million in 2025, reflecting an operating margin of 7%.

The company generated $645.8 million in cash from operations, while cash flows used in investing activities totaled $447.5 million, largely driven by aircraft maintenance requirements and ongoing fleet investments to support future growth.

PAL continued to advance its fleet revitalization program by retrofitting three A321ceo aircraft and taking delivery of two additional A320-200s to meet growing domestic travel demand.

On December 21, 2025, the airline marked a key milestone with the arrival of its first Airbus A350-1000, making Philippine Airlines the first carrier in Southeast Asia to operate the next-generation widebody aircraft.

These fleet investments and ongoing cabin reconfigurations reinforce PAL’s long-term growth strategy, positioning the airline to expand capacity, enhance passenger experience, and support network growth as it enters 2026.

Operationally, PAL strengthened its regional standing after being recognized by Cirium as the most punctual airline in Asia Pacific, underscoring its focus on reliability and operational excellence as demand continued to grow across its network.