Nelson Morales

This photo taken on January 26, 2016 shows tail sections of Philippine airlines (PAL) aircraft seen through heat haze while parked at the terminal II building of the Manila international airport. European plane-maker Airbus said February 17, 2016 it had won a 1.85 billion USD deal for the purchase of six A350-900s by Philippine Airlines (PAL), flag-carrier of one of Asia's fastest growing economies.   AFP PHOTO / TED ALJIBE / AFP PHOTO / TED ALJIBE

Article (news)

PAL net income up in Q1 but wary of impact of Middle East conflict

Arthur Fuentes

ABS-CBN News

MANILA – Flag carrier Philippine Airlines (PAL) reported a steady rise in first-quarter earnings on Tuesday, as robust travel demand and surging cargo yields helped the airline weather late-quarter volatility triggered by Middle East tensions.The airline posted a net income of $78.55 million for the first three months of 2026, a 2.6 percent increase from the same period last year, it disclosed to the stock exchange. Total revenues climbed 9.7 percent to reach $895.70 million, supported by a 6.1 percent rise in passenger traffic to 4.3 million travelers.The company said the results highlight the resilience of the Philippine aviation sector despite a challenging global environment. While passenger revenues grew to $759.65 million, the airline saw its strongest growth in its cargo division, where revenues jumped 22.5 percent to $43.21 million. This surge was attributed to tight global airfreight capacity, particularly on routes impacted by geopolitical disruptions.However, the airline warned that the escalating conflict in the Middle East began to weigh on operations toward the end of March, driving up fuel prices and causing network disruptions. Flying operations expenses rose 9.2 percent to $447.08 million, reflecting both increased flight activity and the sudden pressure on fuel costs.“Our first quarter results reflect both the strength of demand for Philippine travel and the disciplined execution of our team,” said Richard Nuttall, President of Philippine Airlines.“However, these results only partially reflect the impact of the escalation in the Middle East late in the quarter, which has introduced volatility in fuel prices and disrupted parts of the global aviation network,” Nuttall added. “We are actively managing our network and costs to protect margins and liquidity,” he said.Despite these headwinds, PAL said it generated a healthy operating profit of $101.85 million. The carrier stated it remains focused on financial discipline to navigate near-term volatility while continuing its long-term fleet expansion and passenger experience investments.

The airline posted a net income of $78.55 million for the first three months of 2026, a 2.6 percent increase from the same period last year.

The airline posted a net income of $78.55 million for the first three months of 2026, a 2.6 percent increase from the same period last year.