Philippine Airlines Ends 2014 With Profit

In spite of the management shake up half-way through the year, national flag carrier Philippine Airlines ended 2014 with a rare profit. According to a filing at the Philippine Stock Exchange, PAL Holdings, operator of Philippine Airlines, posted a net income of P127.74 million.

pal 777
Copyright Photo: Angelo Agcamaran/PPSG
The news offers hope for the struggling flag carrier that has suffered losses year after year including a P11.85 billion net loss that was posted at the end of December 2013. The profit can be attributed to a sharp increase in passenger and cargo revenues, which have improved with the launching of new routes such as Manila to New York. 

PAL's Trans-Pacific business currently accounts for 31.4 percent of the airline's revenues. Flights to Asia and Australia represent 41.9 percent of PAL's revenue, while the domestic market makes up the remainder. Philippine Airlines currently holds 30.5 percent of the domestic market. Cebu Pacific is PAL's primary competitor, controlling approximately 60 percent of the domestic market along with its subsidiary, Tigerair Philippines. 

Passenger traffic nearly doubled in 2014 with Philippine Airlines carrying 9.6 million passengers, compared to just 5 million in the nine-month period ending in December 2013. The increased passenger traffic boosted PAL's revenue by 80.3 percent to P100.95 billion. Passenger revenues represent the majority of the airline's revenue accounting for 81 percent of total revenue, compared to 7.8 percent for cargo revenue. 

According to Philippine Airlines, although the figures being compared are one entire year versus the previous nine-month period, which is not a direct comparison, the primary drivers of the improved performance are improved flying operations, passenger service, reservation, sales, aircraft and traffic servicing. 

Meanwhile, operating expenses at the flag carrier increased by 60.3 percent to P98.58 billion in 2014. Jet fuel accounted for P38.8 billion of total expenses, representing the carrier's largest single operating expense. Philippine Airlines consumed 6.8 million barrels of fuel in 2014, compared to 4.4 million in the previous year. The price of jet fuel increased slightly in 2014 to $127.92 per barrel, compared to $127.74 a year earlier.

According to the Center for Asia-Pacific Aviation, the outlook for Philippine Airlines looks positive as the Philippine market remains strong, following the restoration of Category 1 status and a reduction of competitors on the domestic front. 

Philippine Airlines President Jaime Bautista remains optimistic that the airline will be able to remain profitable in 2015 as it prepares to launch new routes in the face of intense competition. "I hope we should be able to sustain the positive results during the first two months," said Bautista. He added that the carrier's financial performance should strengthen as the airline opens its new international routes and revives domestic destinations.

Most recently, Philippine Airlines returned to New York after an 18-year absence. The carrier now flies four times weekly from Manila to New York's JFK Airport via Vancouver, Canada. The airline also has plans to launch new flights to Jinjiang, China and Port Moresby, Papua New Guinea. 

44 comments:

  1. Now that PAL has gained some profit for 2014, make sure to get out of the 3-star airline rating so you will compete neck to neck with 4-stars KE, Eva Air, Thai and even Garuda which has recently been certified as 5-star by reliable Skytrax. Do not let those other Asian carriers upstage you, PAL. As I have said before, you have the talent, good work habits, public relations prowess, trilingual ability, etc. Let's go!.

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  2. The only way PAL cam move higher than 3star rating is for us Filipinos to unite and press that 4 or 5star ratings at the skytrax website..but unfortunately most of us Filipijnos have this Crab Mentality tayo mismo sumisira sa image ng PAL kahit sa kaunting pagkukulang nito sa atin..sad to say the most are those residing or working abroad!

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    1. I will give them 4 or 5 stars when they deserve it. Their quality of service hasn't quite improved to that level yet, so of course I won't give them that rating - because that would turn me into a liar.

      Nothing to do with "crab mentality" - that's just the plain truth.

      Yes, I do support PAL and I fly with them whenever the prices/schedules are right ... I do think they're trying to improve (albeit at a snail's pace) and I have great hopes for them for the future. Giving them an inflated rating that they do NOT deserve YET will NOT help them, as it would send the message that they're already at that tier (which they're most assuredly not) and possibly engender a sense of complacency amongst those calling the shots. What's more, if people see that PAL is rated 5 starts and they choose to fly with them, and encounter 3-star service - what sort of message will that send? All it will create is disappointment, bad-mouthing, and a whole lot of bad press ... as well as more negative votes that will just send its ratings down even further.

      So yeah, if you really want to help PAL, give them the rating they actually deserve. If you genuinely believe that they're on par with the world's 5-star airlines, then go ahead and vote accordingly. I believe in telling the truth, and I believe that the truth will help PAL in the long run ... so I will NOT assist in any effort to artificially boost its ratings.

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    2. To Anonymous April 18 at 3:12 AM:

      There is no politics with Skytrax, so even all Pinoys would pressure it, it is hard to tamper with results because it is global in nature. For those who are residing or working abroad, they are very vocal about airline reviews because they are the real witnesses to this important study or opinion about airlines...they are the frequent fliers and you cannot "doctor" their opinions because they are more advanced to global realities, especially those coming from North America. What can we say, just wish them more luck and not "sour graping" them. That's life.

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    3. Im flying with pal 3x a year from.yvr'mnl-yvr.and i find nothing bad about the service on borad. In the fiesta class it has more legroon than other 4 or 5star rating airlines.same with mabuhay class..cabin attendants are friendly and polite.The only problem that ive seen is us among filipinos iba ang frelings ngbiba pag sumakay tau ng eroplano naging mayabang.some of it even posted rude videos o er social media.

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    4. Flying with PAL's B777 is good. Business class as well as economy are equipped with personal TV. But if have tried to fly their A321, it really sucks! I always fly business class but there's no personal TV. Cabin crew will give each business class pax an ipad instead.

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  3. I agree with crab mentality as most of us filipinos are the one who puts our own carrier down!.most of us feel mayabang nakaapak lng ng abroad.likes to compare this and that airlines to Pal..recently Pal is in the top 22 among dependable airlines in tbe world and yet here we i have read negative comments pa rin about pal...Pinoy nga naman!

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    1. Kung nasubukan mo sana na lumipad sa Singapore Airlines, Cathay Pacific, Korean Air, Asiana, Eva Air at Philippine Airlines, walang duda na hindi ka magtataka kung bakit 3-star pa rin ang PAL hanggang ngayon. Kaya nga tinutulungan ang PAL via constructive criticism para malaman ni Bautista ang kanyang gagawin. Hindi ito paninira o crab mentality. It's the truth.

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    2. colonial mentality ofw

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    3. It's mediocrity and not crab-mentality. Airlines try and out-do each other and come up with better products and services to make them five star rated. Sadly, such is not the the case with PAL because of its "pwede na" attitude.

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    4. And PAL's cost-cutting episodes/policies do not work with FilAms or FilCanadians because they are 98% sophisticated in almost everything; from fashion/music trends, airline perks and amenities, double-job opportunities for advancement, penchant for higher education for higher income, fat wallets and wise investments for their future. In other words, PAL has to earn loyalties of these "western pinoys" by matching what the other airline competitors may offer. So natural after all.

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    5. Ang hirap naman sa PAL, ang gusto nila ay tawagin silang 5-star without exerting effort to improve the overall flying experience.

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    6. Come on, think positive. Now that PAL is now out of Ramon Ang's strategic but poor management, let's wait for PAL's improvement. It will be soon.

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  4. I am Canadian married to a Filipina i can only say one thing about Phil.Airlines it is far more better than Air Canada which is full of crap.from.customer service to cabin attendants.

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    1. Thats why Pal choose West Jet instead of Air Canada in a new code share agreement in Canadian Airspace because west jet is a great Canadian Airline.

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    2. PAL blends with the 3 star West Jet and PAL is inferior to the 4 star Air Canada.

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    3. This is why i dont really care about the star ratings between this two canadian airlines.the only reason why AC is ahead by 1 star than WS because AC have more International Destinations Than WS.but in customer and on board servicse WS is much better than AC.

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  5. Skytrax is managed by British management, which is a reliable and transparent professional group collecting data, opinions, audits, etc., from close to 20 million travelers around the globe. So far, the British are the most honest to goodness managers you'll see around, I should know it, I've been with British people working in the Middle East for a while and they are the most reliable managers so far. I am sure everybody who knows about British popularity agrees. Example, the last Olympic games 3 years ago: They staged it so well from the airport arrivals to the sport venues, advertisements, volunteers of almost all nationalities living in Britain, facilities, souvenirs, security, among others. That's the best Olympics I've attended, so far. For your info, my mother country is Spain with King Phillip 6 as a new, modern and educated king.

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  6. Susme! Yung iba dito makapagcomment lang kahit wala ng logic.

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    1. Ano sabi mo? Walang logic ang 3-star rating ng PAL? Skytrax and nagbibigay ugat ng kanyang kapalaran ngayon at kailanman. Buksan ang utak, he?

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    2. Kasi mga BOBO ang Pilipino. Palpak sa utak!!

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    3. @ FILIPINO PUNK

      Hindi lahat ng Pilipino, BOBO at palpak sa utak. Malamang ikaw lang yun. Kaya humarap ka sa salamin at saka mo sabihin yang sinasabi mo.

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  7. Nakita lang si mickey mouse sa america at nilamigan ng snow ng canada nag iba na ang ugali ng pinoy maarte,mayabang at reklamador na! Bigyan ng milk tea ang mga hambog na yan! Lol

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  8. Kawawa ka naman at hindi ka masuwerte sa buhay, diyan ka na lang sa Pilipinas....sana makapunta ka rin sa abroad. Pero kaming mga nakakita ng mickey mouse ay Pinoy pa rin na nagbabanak ng buto, nagpapadala ng dolyar sa Pilipinas para matulungan ang pamilya namin at pati na ang economia ng gobyerno ng Pilipinas. Kung walang dolyar ang RP ay isang daang piso na sana ang presyo ng pagsakay mo sa traysikel diyan. Sobra ka namang maghusga ng mga pinoy sa America o abroad. Salamat, anyway sa iyong comment. At least alam namin ang hinanakit mo. Good luck at suwertihin ka rin sana!

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    1. @4/19/2015, 9:57 AM
      a). Pinoy maarte - Kasi sa America, ang daming pagpipilian ng servicio o bilihin gaya ng airlines; ditto sa usa domestic at international man especially those going to Europe. Cultura kasi ditto ang magbakasyon ka o ibakasyon ang mga anak mo at least once a year, pero kung may pera kang gastusin (because nurse o doctor kang malaki ang kita at overtime pa), baka twice or thrice pa ang lakwatsa.
      Kaya nga gustong malaman ng mga FilAms kung bakit wala pa ang CebuPac dito sa California o Hawaii man lang. Kaming nagsawa na sa Europe (halos nakita na naming lahat doon) ay gusto naman naming i-shift ang focus namin sa Asia lalo na sa Pinas para matutong gustuhin ng mga anak namin and bansa ng kanilang magulang, pagkat kung nagbiabiahe kami ng twice a year sa Pinas, halimbawa, ay masasanay din ang mga batang ito diyan. Iyan ang isang razon kung bakit interesado ang topic na airlines of the Philippines coming to USA (aside from PAL). Therefore, hindi kaartehan ito. Buti nga at kung lagi kaming umuuwi diyan ay para maggastos naman para sa economy ng Pinas, I am sure hindi masama iyon, di ba?

      b) Pinoy Mayabang - Mas advance kasi ditto sa lahat ng bagay, therefore, kung kaya ni FilAm Juan de la Cruz ang bumili ng top of the line na Mercedez Benz o BMW dahil may business siyang carinderia, money remittance at air or sea cargo, that means hindi kayabangan. Anong gagawin ni Juan sa pera niya, papunta lang kay Uncle Sam (tax, tax, tax), e di magbuhay marangya na lang siya! Kasalanan ba niya ang suwertihin ng kaunti dahil wise at masipag siya? Kaya si Juan de la Cruz ay nasanay na sa economy class nahil sabi niya tama na iyong pinakamabababg pasahe, total, marami namang pagpipiliang airline papunta sa Maynila. Too bad, gusto ni Juan ang 9-seat abreast na B777 gaya ng Korean at Asiana or Cathay at masarap daw ang pagkain nila, e.g., Bibimbap (PAL, take note, magpakain ka na rin ng adobo as a choice, o pinakbit kaya, dahil taga Ilocos si Juan).

      c) Pinoy reclamador - Nahawa na sa cultura si Juan ditto sa America at talagang magrereklamo siya kung mahal ang pasahe ng PAL e mas mababa pa ang mga offer ng ibang airlines...hindi ko na sasabihin para hindi masyadong (deretsa ang usapang pasahe). Ang sinasabi ko laang ay kung competitive ang fares ng airlines of the Philippines, tiyak na babalikan na naman ni Juan dela Cruz sila.

      Salamat po! Sana wala nang masasamang comments diyan!

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  9. Pinoys still can't accept the truth that PAL really is a mediocre airline. Typical "pwede na" mentality. PAL is not on par with any of its Asian counterparts. And Pinoys who have flown other airlines and found them to be better are called "maarte", "mayabang", etc, etc, etc... Or those who live abroad "look down" on PAL. Well too fucking bad because that's the global economy, nothing to do with sensitive Pinoy feelings or misplaced sense of nationalism. We vote with our wallets and until PAL improves its ground and onboard experience, especially in business class, we will continue to fly the world class carriers of the region. If the pea-brained Pinoys here can't accept the realities of the world, then too fucking bad, too fucking sad for you because your mentality has no place in the globalized world, to which PAL competes, and the Philippines belongs! Stay in your villages, you are insignificant anyway.

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    1. You nailed it precisely, boy!

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    2. And they now call their village "barangay" and no more "barrio" for your information only...no offense, I am one of them living there. LOL

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  10. Philippine Airlines terminal in Manila is both crowded and hot. They check you in at the desk and then you go through immigration and you have to be checked in again to sit in the waiting area for your flight. Massive long lines everywhere. Then you have to show your passport to board the aircraft. Is there really any need for having your passport checked 3 times?

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    1. I wish those airport employees would have the chance to experience the western world's airport formalities so they would know how life in the west is not too vulgar and tedious when it comes to travel and leisure! The best way now is to fly to Davao or Cebu on international flights. At least, there are fewer passengers or less crowded! Have a day or two in those exotic cities then take an LCC flight to Manila. Ole!

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    2. At kung ang flight ay papunta sa Guam, Honolulu o Los Angeles, hindi na dapat pahirapan pa ang mga pasahero lalo na iyong holders ng U.S. passports, kasi wala na silang I-check pa doon dahil "fake-proof" na ang U.S. passport ngayon! At pauuwiin na ang kalahating airport employees para maghanap sila ng trahaho sa mga agricultural sector or fshing sector para umasenso sila. Iyan and isa pang problema ng siglo - nepotismo, kaya hanggang diyan na lang.......OMG

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  11. Yes agree the problem seems to be when they check you in to the waiting area for your flight. This takes ages with the clark writing something down with other airlines you simply show your passport and carry on walking

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    1. Do not be alarmed if there are countless of airport employees in Manila airport because manpower supply exceeds demand which equates to inefficiency, nepotism, corruption and bad economics. Remember, the Philippines was a colony of Spain and these types of scenarios are also found in other Spanish colonies globally. After almost six centuries later, it is still lingering on and on........

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    2. Now is the time to check with Skytrax about reviews of the following airports: Madrid, Manila, Buenos Aires, Mexico City, Tegucigalpa, Bogota, La Paz, Lima. Have fun!

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  12. Beware boys! Gate 1 of NAIA assigned to United Air you will find security males who frisk you "every part of your body" especially if you are young macho and good looking! I should know it........, dam, what a character!

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  13. Apologies for the off topic, why is it that NAIA continues to implement the overhead paging system regarding flight status? It should be a quiet airport practiced globally. What's the point of having monitors in the first place? Only in da Philippines!

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    1. And no one is listening because of the commotion, long lines, anxiety, verbal arguments between employees and passengers. The shrill sound plus the outdated model of the paging system would even "ruin" your ear drums.......

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  14. If they want to get a higher rating, they should clean their planes first. I'm serious. Then probably next get on with their IFE. And third could be the food. But there'a no doubt that pinoy pilots execute smooth landings most of the time!

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  15. PAL Economy class meal is really no class consists of Rice,Rice,Rice and Rice...what the heck?? What about us or other pasengers that are not used to eat or like to eat Rice..What about mashed potato or pasta instead? ??

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  16. Manila to Dhahran April, 1983 on PAL 747 flight:
    Plain rice with pancit canton (cabbage, chicken bits, sugar beet, bell pepper); a plastic glass of coca cola poured from the family size plastic coke container; little flour cake. I loved it. My American seatmate passed on but told me later (after 6 hours) to tell the crew to give him inflight food...he was given a big "monay", butter and a small cake. He was so happy.
    November, 1991 Los Angeles to Manila via Honolulu on my emergency trip due to my mother's hospitalization:
    Fried rice and little shrimps (shelled and deveined), pastry and Pepsi on a can. I loved it! After dinner, I slept on the four middle seats (vacant) until we arrived at HNL for passenger pick up and gas tank fill up. I love PAL. But these should improve more and more because of competition. Singapore Airlines is now very "loose" as it competes with whoever has the lowest air fares in the market. Survival of the fittest!

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  17. This is my first time i visit here. I found so many interesting stuff in your blog especially its discussion. From the tons of comments on your articles, I guess I am not the only one having all the enjoyment here keep up the good work ywam dts

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