Philippine Airlines swings to $25.1M loss in first half of 2026 on fuel costs

Philippine Airlines (PAL) reported a net loss of $25.1 million for the first half of 2026, compared with a $136.7 million profit in the same period the previous year, according to the carrier. The airline attributed the reversal primarily to a sharp rise in fuel costs linked to the conflict in the Middle East, which offset otherwise steady revenue growth.

Total revenue increased 5.9% to $1.746 billion, driven by stronger passenger yields, cargo performance and ancillary income, PAL said. Passenger revenue rose 4.5% to $1.47 billion, while cargo revenue jumped 30% to $98.2 million.

However, fuel expenses rose 48.2% year-on-year to $674.5 million, now accounting for 39.2% of operating costs, up from 30.3% a year earlier, according to the airline. This represented a $219.5 million increase in fuel spending that outweighed the revenue gains. Non-fuel costs rose just 4.1% over the same period.

EBITDA fell 28.5% to $271.0 million, with margin narrowing to 15.5% from 23.0%. The second quarter was particularly weak, with PAL posting a $103.6 million net loss versus a $60.2 million profit a year earlier, as fuel costs climbed 88.2% year-on-year in that quarter.

Passenger volumes also declined, with the airline carrying 8.2 million passengers in the first half, down 3.1% year-on-year, while load factor slipped to 78.9% from 81.6%. In response to cost pressures, PAL said it adjusted schedules on select domestic, Middle East and regional routes while keeping its long-haul international network largely unchanged. Available seat kilometers held steady at 22.8 billion.