News
Philippine Airlines swings to interim net loss
August 14th 2026
Philippine Airlines (PAL) recorded a $25.1 million net loss in the first half of 2026, compared to a $136.7 million profit during the same time last year. Read More » The loss was attributed to a 48% fuel cost increase, resulting from the conflict in the Middle East. For the second quarter, PAL recorded a net loss of US$103.6 million, compared with net income of US$60.2 million in 2Q25, as fuel costs increased 88.2% year-on-year to US$422.9 million. “The Middle East conflict has created significant near-term pressure on our fuel costs, and our second-quarter results reflect that impact. At the same time, our first-half performance demonstrates PAL’s underlying resilience,” PAL president Richard Nuttall commented. The first-half revenue increased 5.9% to $1.75 billion, thanks to higher fares, stronger cargo sales and ancillary income. Passenger and cargo revenues increased by 4.5% to US$1.47 billion and 30% to US$98.2 million, respectively, supported by fare and freight rate adjustments. Ancillary revenues continued to expand through increased uptake of travel-related products and services. PAL carried 3.1% fewer passengers at 8.2 million, and load factor eased to 78.9% from 81.6%.
Looking ahead, the airline said the ongoing Middle East conflict remains the key variable for PAL’s second-half 2026 outlook, given its impact on fuel prices, inflation, and travel demand. The carrier noted that international demand remained robust, while domestic demand has been more affected by higher fares, although domestic operations remain profitable.
