Philippines Airlines, controlled by billionaire Lucio Tan, has announced plans to expand and upgrade its fleet after posting record profits in 2023. The company signed an order for nine A350-1000 long-haul aircraft from Airbus worth $3.2 billion at the Paris Air Show, with the first deliveries expected next year. This move will allow the airline to strengthen its presence in North America and other destinations.
In 2023, PAL’s net profit surged by 92% to $379 million, driven by the ongoing recovery in air travel following the pandemic. The airline saw an increase in passengers, transporting 14.7 million in 2023, marking a 58% rise from the previous year and boosting its passenger load factor to 80.8%. In response to these positive results, PAL’s president and COO Stanley Ng emphasized the need to continue the company’s corporate transformation efforts, including introducing new aircraft, retrofitting cabins, upgrading airport lounges, and implementing product innovations.
As travel demand rebounds, PAL has expanded its services, resuming flights to over 10 domestic destinations and introducing thrice-weekly flights between Manila and Perth to cater to the growing demand in Australia, a key market for the carrier. Currently operating with a fleet of 78 aircraft, PAL serves 33 destinations in the Philippines and 39 overseas routes across Asia, North America, and the Middle East.
Despite facing challenges in the past, PAL rebounded in 2021 by canceling $2 billion in debt, decreasing its workforce by 30%, and downsizing its fleet. The airline emerged from U.S. Chapter 11 bankruptcy proceedings at the end of 2021 after filing a restructuring plan and receiving a capital injection from Tan. Lucio Tan, who also has interests in banking, beer, spirits, tobacco, and real estate through his publicly listed LT Group, holds a net worth of $2.6 billion, ranking as the tenth richest individual in the Philippines as of August 2023.
Looking ahead, PAL aims to sustain its profitability and growth by capitalizing on the recovering travel industry. With the upcoming addition of new long-haul aircraft from Airbus and ongoing efforts to enhance its services and offerings, the airline is poised to strengthen its market position and meet the evolving needs of passengers. PAL’s recent success and strategic initiatives signal a positive outlook for the company as it navigates the challenges and opportunities in the post-pandemic travel landscape.
