PAL books 5.9% revenue growth in H1

MANILA, Philippines — Philippine Airlines (PAL) reported a 5.9-percent revenue increase in the first half, despite rising jet fuel prices from the Middle East conflict negatively impacting its bottom line.

In a disclosure on Thursday, the Lucio Tan-led flag carrier said total revenues rose to $1.75 billion from $1.65 billion a year ago, driven by higher passenger yields, stronger cargo performance and growth in ancillary revenues.

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However, fuel costs rose significantly, reaching $674.5 million in the first half, resulting in a net loss of $25.1 million for PAL, compared to a net income of $136.7 million during the same period last year.

In the second quarter alone, PAL posted a net loss of $103.6 million as fuel costs jumped 88.2 percent to $422.9 million.

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“The Middle East conflict has created significant near-term pressure on our fuel costs, and our second-quarter results reflect that impact. At the same time, our first-half performance demonstrates PAL’s underlying resilience,” PAL president Richard Nuttall said.

“We enter the second half with the flexibility to manage through this disruption while staying focused on our strategic plan,” Nuttall added. /pai