Philippine Airlines (PAL) is expecting a full recovery in business with soaring passenger demand across Asia-Pacific. The airline also has plans to have all its aircraft in active service towards the end of this year. In a recent media event, the airline’s top executives painted an optimistic forecast for 2023 with predictions of huge profit margins.
Lucio Tan, Chairman, Philippine Airlines said: “We are expecting a continuing strong market recovery so there are plans in place to enhance and upgrade our fleet.”
Currently three of PAL’s planes are in storage, A320-200, A320neo and A321neo.
Meanwhile the resumption of parked planes depends on the availability of parts, as the planes will need to be refurbished before they can be re-introduced. Speaking on the supply chain issue, Stanley Ng, CEO, PAL said: “Supply chain is one of the biggest challenges as well. So, if we wanted to activate our aircraft, we are also dependent on the suppliers of engines as well as other spare part. We are open to every supplier. Currently, we are actually in the process of negotiating with them.”
Christoph Gaertner, VP, network planning, PAL said: “PAL has 68 airplanes in its fleet, and the reactivated fleet would be deployed on international routes. Most aircraft returning to service would be used for its China routes.”
Prior to pandemic, China was the second-largest source of tourists to the Philippines, with 1.74 million Chinese residents arriving in 2019. The airline currently operates flights to Shanghai, Beijing, Xiamen, and Guangzhou in China with plans to ramp the capacity with demand.
The airline is expecting 40% increase in flight volume towards the year-end and foresees strong passenger demand.