Philippine Airlines Reports 62% Increase in Q3-2025 Income
Philippine Airlines announced a significant rise in net income, reflecting the success of its strategic transformation.
Philippine Airlines Reports 62% Increase in Q3-2025 Income
Philippine flag-carrier Philippine Airlines (PAL) reported a 62 percent year-over-year increase in its third-quarter net income. The airline’s total quarterly revenue of US$22 million reflects its resilience built upon ongoing strategic transformation plans.
Total revenue for the three months ended 30th September rose to US$755 million, an increase of three percent. This improvement is attributed to increased flight operations and a steady passenger volume of 3.8 million. Passenger revenues rose by one percent to US$632 million, while ancillary income surged by 25 percent due to seat upgrades and baggage fees. Cargo revenues also saw a rise of two percent to US$42 million.
However, operating costs increased by two percent, totaling US$719 million, mainly due to higher airport and third-party charges as well as depreciation. Earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 28 percent to US$140 million, with margins at 19 percent. For the first nine months of 2025, PAL reported a net income of US$159 million, up 17 percent from the previous year. Meanwhile, its capital expenditures rose to US$308 million from US$265 million in the same period last year.
Loyalty Program Developments in Q3
Mabuhay Miles, PAL’s loyalty program, saw significant flight redemptions in August, driven by its iconic Great Mabuhay Miles Getaway promotion. On October 15th, PAL and the Philippine National Bank (PNB) renewed their co-branded PAL Mabuhay Miles PNB Mastercard suite of credit and debit cards.
Outstanding Performance
Operationally, PAL solidified its standing by achieving the top on-time performance (OTP) among Asia-Pacific carriers for the third consecutive month, according to Cirium data. The airline received a four-star rating from the Airline Passenger Experience Association (APEX) based on certified passenger feedback.
Richard Nuttall, PAL’s President, stated: “These accolades enhance PAL’s position as the nation’s flag carrier, affirming its reputation for reliability, customer service, and operational excellence. As we move forward with our strategic and long-term initiatives, we remain focused on delivering value to stakeholders, strengthening our financial position, elevating the passenger experience, and ensuring the highest standards of safety in all our operations.”
The airline is modernizing its fleet, introducing refurbished A321ceo aircraft equipped with in-flight entertainment screens across all cabins, to be deployed on routes to Tokyo, Osaka, Jakarta, Bali, and Guam by year-end.
