Philippines Airlines, owned by billionaire Lucio Tan, announced plans to expand and upgrade its fleet after achieving record profits in 2023 due to the post-pandemic travel rebound. The airline had ordered nine A350-1000 long-haul aircraft from Airbus valued at $3.2 billion at the Paris Air Show, with deliveries expected to begin next year. This would allow the airline to enhance its presence in North America and other destinations. In 2023, PAL’s net profit increased by 92% to $379 million, with a passenger load factor of 80.8%.
Stanley Ng, PAL’s president and COO, highlighted the importance of not becoming complacent and continuing the corporate transformation of the airline to preserve their gains. The company plans to introduce new aircraft, retrofit current cabins, upgrade airport lounges, and innovate its products. Additionally, PAL resumed flights to over 10 domestic destinations and introduced thrice weekly flights between Manila and Perth to cater to demand in Australia.
PAL, Asia’s oldest airline, managed to turn a profit in 2021 after canceling $2 billion in debt, reducing its workforce, and downsizing its fleet. With the help of a fresh capital injection from Tan, the carrier emerged from U.S. Chapter 11 bankruptcy proceedings at the end of 2021, just three months after filing for a restructuring plan. Apart from the airline, Tan also has interests in banking, beer, spirits, tobacco, and real estate through his publicly listed LT Group. Tan ranked 10th on the list of the richest people in the Philippines in August 2023 with a net worth of $2.6 billion.
The airline currently operates with a fleet of 78 aircraft across 33 destinations in the Philippines and 39 international routes in Asia, North America, and the Middle East. PAL’s focus on expanding its fleet and improving its services comes as air travel demand continues to recover post-pandemic. The company’s efforts to enhance and modernize its offerings are aimed at maintaining its competitive edge and meeting the evolving needs of its passengers in a changing travel landscape.
PAL’s success in the past year reflects the resilience and adaptability of the airline in response to the challenges posed by the pandemic. By strategically canceling debt, reducing costs, and restructuring its operations, the carrier was able to weather the storm and emerge stronger. With the backing of billionaire Lucio Tan and his diverse business interests, PAL is poised to continue its growth trajectory and remain a key player in the aviation industry. The expansion and upgrades planned by PAL signal a commitment to staying ahead in the market and providing exceptional service to its customers.
