Maintaining profitability as it continues to grow its network and confront the challenging global aviation environment.
According to flag carrier Philippine Airlines (PAL), it was able to maintain strong profitability in 2025 as it posting a net income of US$160.4 million.
The company then saw its total revenues climb to US$3.22 billion, up 3.0% year‑on‑year (from $3.13 billion in 2024), which it attributed to solid performance across the airline’s core businesses.
PAL said that its passenger business remained the primary revenue driver, generating US$2.73 billion amid sustained travel demand. During this period, the airline carried 16.3 million passengers during the year, which is a 4.3% increase from 2024.
Mainly, this can be traced to PAL’s increased capacity, with the Available Seat Kilometers (ASKs) up by 3.3% to 46.19 billion in 2025 from 44.74 in the previous year.
Although, the passenger load factor slightly decreased from 79.1% in 2024 to 78.7% in 2025.
Over to ancillary revenues, they also saw strong growth, as it rose by 24.9% year‑on‑year to US$301.2 million, which is mainly due to higher volumes of seat upgrades—making this segment contribute 9.4% of PAL’s total revenues.
The cargo business, known as PAL Cargo, posted a 3.7% increase in revenues from US$159.7 million in 2024 to US$165.0 million in 2025, driven by a 1.8% increase in cargo volume from 184.1 million kilograms in 2024 to 187.5 million kilograms in 2025.
Cargo revenues also account for 5.2% of the airline’s consolidated revenues.
Total operating expenses also increased by 6.3% to almost US$3.0 billion mainly due to the increase in number of flights operated, higher maintenance cost and other structural cost increases which drove up the company’s cost of operations in Manila.
Income generated from its operations reached US$228 million in 2025 reflecting an operating margin of 7%.
In 2025, PAL continued to advance its fleet revitalization program, retrofitting three (3) A321ceo aircraft, and taking delivery of two (2) additional A320‑200s to help meet growing domestic travel demand.
On December 21, 2025, the airline also marked a significant milestone with the arrival of its first Airbus A350‑1000, making Philippine Airlines the first carrier in Southeast Asia to operate the next‑generation widebody aircraft.
“These fleet investments and ongoing cabin reconfigurations reinforce PAL’s long‑term growth strategy and position the airline to expand capacity, enhance passenger experience, and support network growth as it enters 2026,” noted the company.
Meanwhile, PAL also closed the year by being by aviation analytics firm Cirium as the No. 1 most punctual airline in Asia Pacific.
Richard Nuttall, President of Philippine Airlines, said: “Our 2025 results validate PAL’s successful transition from post-pandemic recovery to sustainable, long-term growth. Despite an industry-wide softening of passenger yields, we successfully defended our top line through disciplined revenue and network management.“
He also shared that in order to navigate the cost pressures, they have also aggresively driven internal efficiencies to namang costs.
“Simultaneously, we are heavily investing across our end-to-end passenger journey, particularly in continuously improving our On-Time Performance (OTP), to deliver a reliable and seamless customer experience anchored on the world-class service and genuine care that define Philippine Airlines,” Nuttall added.
Philippine Airlines (PAL) is the Philippines’ flag carrier and the country’s only full-service network airline that was founded in 1941.
It operates from its hubs in Manila, Cebu, Clark, and Davao to 30 destinations in the Philippines and 41 destinations in Asia, North America, Australia, and the Middle East, on top of its cargo and charter services.