Philippine Airlines (PAL) closed 2025 with a net income of $160.4 million, a 6.1% increase from the previous year, as the Philippine flag carrier continued its post-pandemic momentum despite a tougher operating environment.
Total revenues reached $3.22 billion, up 3% from $3.13 billion in 2024. The airline carried 16.3 million passengers over the year, a 4.3% jump from the prior period.
Passengers and ancillary revenues drive growth
The passenger business remained the airline’s main revenue engine, bringing in $2.73 billion. Capacity, measured in available seat kilometers, rose 3.3% to 46.19 billion, though load factor dipped slightly from 79.1% to 78.7%.
Ancillary revenues proved to be a bright spot, climbing 24.9% to $301.2 million, largely driven by higher volumes of seat upgrades. That segment now accounts for 9.4% of total revenues.
Cargo also posted gains, with revenues rising 3.7% to $165 million as volume increased to 187.5 million kilograms. Cargo now represents 5.2% of the airline’s consolidated revenues.
Costs rise alongside expansion
Operating expenses climbed 6.3% to nearly $3 billion, reflecting a busier flight schedule, higher maintenance costs, and structural cost increases tied to the airline’s Manila operations.
Income from operations came in at $228 million, reflecting an operating margin of 7%. The airline generated $645.8 million in cash from operations, with $447.5 million going toward investing activities, primarily heavy maintenance and fleet investments.
Fleet and operational milestones
Philippine Airlines continued its fleet renewal push in 2025, retrofitting three Airbus A321ceo aircraft and adding two A320-200s to meet growing domestic demand.
The airline’s headline moment came in December, when PAL took delivery of its first Airbus A350-1000, becoming the first carrier in Southeast Asia to operate the next-generation widebody. The aircraft is expected to support long-haul expansion and improve fuel efficiency.
On the operations side, PAL was named the most punctual airline in Asia Pacific by aviation analytics firm Cirium, a recognition the carrier has leaned into as a differentiator.
“Our 2025 results validate PAL’s successful transition from post-pandemic recovery to sustainable, long-term growth,” said President Richard Nuttall. “Despite an industry-wide softening of passenger yields, we successfully defended our top line through disciplined revenue and network management.”
Nuttall added that the airline is “aggressively driving internal efficiencies” to manage cost pressures while continuing to invest in the passenger experience.