Struggling To Grow? The Fleet Of Philippine Airlines In 2024

Summary

Philippine Airlines has seen a modest fleet expansion from 76 to 79 aircraft since October 2022, despite challenges in acquiring new Airbus A350 or Boeing 777 models to meet post-pandemic demand. The airline reported its first profit since 2019, with a significant revenue increase due to lifted travel restrictions. It has ordered nine A350-1000s for long-haul routes and is considering replacements for its A330-300s. The addition of ex-Garuda 777-300ERs and reactivation of stored aircraft address short-term capacity needs.

Takeaways

• 📈 Philippine Airlines' fleet has grown from 76 to 79 aircraft since October 2022.
• 🔄 The airline has reported its first post-pandemic profit, marking a significant financial recovery.
• 🛫 To meet increased demand, Philippine Airlines has faced challenges in acquiring new Airbus A350 or Boeing 777 aircraft.
• 🆕 The airline has ordered nine new Airbus A350-1000s to expand its long-haul capabilities.
• 🌐 The A350-1000s are intended for non-stop transpacific and transpolar routes, connecting the Philippines with North America and Europe.
• ✈️ The fleet includes a mix of aircraft such as Dash 8-400s, A320-200s, A321-200s, A330-300s, A350-900s, and 777-300ERs.
• 🔄 Some aircraft, like the Dash 8 and A330-300s, were reactivated from storage to bolster the fleet.
• 🌐 The airline has added a Boeing 777-300ER previously operated by Garuda Indonesia, with another expected soon.
• 💹 2022 revenue showed a 112% increase compared to 2021, largely due to lifted travel restrictions.
• 🔧 Philippine Airlines is considering replacements for its A330 fleet in the next few years, potentially with the A330neo series.

Q & A

How many aircraft did Philippine Airlines have in October 2022?

Philippine Airlines had 76 aircraft in October 2022.

What was the first post-pandemic profit reported by Philippine Airlines?

Philippine Airlines reported an operating income of $297.2 million and a total comprehensive income of $196.9 million for 2022.

What challenges did Philippine Airlines face in expanding its fleet post-pandemic?

Philippine Airlines faced difficulties in finding available Airbus A350 or Boeing 777 aircraft to meet the post-pandemic demand.

What new aircraft order did Philippine Airlines place to address its fleet needs?

Philippine Airlines placed an order for nine Airbus A350-1000s, starting with a Memorandum of Understanding in May 2023.

How many passengers does Philippine Airlines plan to accommodate on its A350-1000 aircraft?

Philippine Airlines plans to accommodate 380 passengers on board the A350-1000 in a three-class configuration.

What is the current total number of aircraft in Philippine Airlines' fleet?

As of the information provided, Philippine Airlines has 79 aircraft in its fleet.

Which aircraft were reactivated by Philippine Airlines after being stored?

Philippine Airlines reactivated a Dash 8 stored in North Bay, Ontario, Canada, and two Airbus A330-300s that had been stored at various facilities in Europe.

What was the financial performance of Philippine Airlines in 2022 compared to 2021?

The 2022 revenue of Philippine Airlines was up 112% over the revenue posted in 2021.

Which aircraft did Philippine Airlines acquire from Garuda Indonesia?

Philippine Airlines acquired a Boeing 777-300ER from Garuda Indonesia in March 2024.

What is the average age of the A330-300s in Philippine Airlines' fleet?

The average age of the A330-300s in Philippine Airlines' fleet is a little over 10 years.

What is the potential replacement for the A330-300s in Philippine Airlines' fleet?

The potential replacement for the A330-300s could be the A330-900 of the A330neo series, as seen with other carriers in the Southeast Asia region.

Outlines

00:00

🛫 Philippine Airlines Fleet Update and Post-Pandemic Recovery

Philippine Airlines has seen a modest increase in its fleet size from 76 to 79 aircraft since October 2022. The airline has reported its first post-pandemic profit, marking a significant financial rebound. Despite this, the carrier faces challenges in acquiring new Airbus A350 or Boeing 777 aircraft due to high demand post-pandemic. To address this, Philippine Airlines has ordered new A350-1000s and is considering replacements for its A330 fleet. The current fleet composition includes a mix of aircraft types, with some older models operated by its subsidiary, PAL Express. Notably, the airline has reactivated stored aircraft and added a Boeing 777-300ER previously operated by Garuda Indonesia, with another expected soon. The removal of four A350-900s in 2020-2021, which were later acquired by Lufthansa, might be seen as a strategic misstep given the current demand for capacity expansion.

05:02

🌟 Philippine Airlines' Expansion Plans and Fleet Modernization

Philippine Airlines is actively seeking to expand its widebody fleet to enhance long-haul operations, facing supply-chain challenges and competition for aircraft. The airline's president has expressed difficulties in acquiring new planes immediately, with deliveries expected only in 2025. Despite these challenges, the carrier has committed to ordering nine Airbus A350-1000s, signed initially as a Memorandum of Understanding and later confirmed at the Paris Air Show. These aircraft will be configured to accommodate 380 passengers and are intended for long-haul routes, particularly transpacific and transpolar flights to the US, Canada, and Europe. The A350-1000s are part of a broader fleet expansion strategy, not merely for renewal. The airline also anticipates replacing its A330-300s, averaging over 10 years old, with potential options including the A330neo series, which has seen adoption in the region by other carriers. The recovery and renewal of Philippine Airlines are evident in its financial turnaround and strategic fleet planning.

Keywords

💡Philippine Airlines

Philippine Airlines is the national flag carrier of the Philippines. In the context of the video, it is the main subject of discussion, with a focus on its fleet of aircraft and its financial performance post-pandemic. The video discusses the airline's fleet composition, its return to profitability, and its future plans for fleet expansion and modernization.

💡Fleet

A fleet in the context of airlines refers to the collection of aircraft owned or operated by the airline. The video script provides a detailed overview of Philippine Airlines' fleet, including the types and numbers of aircraft, such as the Airbus A350, Boeing 777, and A330 models. The fleet's size and composition are critical to the airline's operations and growth plans.

💡Post-pandemic profit

This term refers to the financial gain that an airline, in this case, Philippine Airlines, has made after the COVID-19 pandemic. The video highlights that the airline logged its first post-pandemic profit, which is significant as it indicates a recovery in the airline's financial health and the aviation industry's rebound from the pandemic's impact.

💡Airbus A350

The Airbus A350 is a family of long-range, wide-body aircraft produced by Airbus. In the video, it is mentioned that Philippine Airlines is facing difficulties in finding available Airbus A350 aircraft to meet the increased demand post-pandemic, leading the airline to order new A350-1000s to expand its fleet and meet its long-haul operation needs.

💡Boeing 777

The Boeing 777 is a long-range, wide-body aircraft produced by Boeing. The video discusses the airline's challenges in acquiring additional Boeing 777 aircraft and its decision to add ex-Garuda Indonesia 777-300ERs to its fleet. These aircraft are crucial for the airline's long-haul routes and capacity expansion.

💡PAL Express

PAL Express is a regional subsidiary of Philippine Airlines. The script mentions that some of the aircraft, such as the Dash 8 turboprops and some older A320 and A321s, are technically operated by PAL Express. This indicates the structure of the airline group and how it manages its regional operations.

💡Aircraft reactivation

Aircraft reactivation refers to the process of returning aircraft that were previously stored or inactive back into service. The video notes that Philippine Airlines reactivated some of its stored aircraft, such as a Dash 8 and Airbus A330-300s, to meet the increased demand for air travel post-pandemic.

💡Memorandum of Understanding (MoU)

An MoU is a formal agreement between parties that outlines the terms and details of a potential future transaction. In the video, Philippine Airlines signed an MoU with Airbus for the purchase of nine A350-1000s, which was later converted to a firm order. This signifies the airline's commitment to fleet expansion and modernization.

💡Fleet modernization

Fleet modernization involves upgrading an airline's aircraft to newer, more efficient models. The video discusses Philippine Airlines' plans to replace its older A330-300s with newer models in the future, indicating the airline's strategy to improve its operational efficiency and passenger experience.

💡Capacity expansion

Capacity expansion in the context of airlines refers to increasing the number of seats or aircraft available to meet growing demand. The video highlights Philippine Airlines' efforts to expand its capacity by reactivating stored aircraft and ordering new planes, such as the A350-1000, to accommodate the post-pandemic surge in travel demand.

💡Transpacific and transpolar routes

These terms refer to long-haul flight routes that connect the Philippines with destinations across the Pacific Ocean and the Arctic region, typically to North America and Europe. The video mentions that the new A350-1000s will be used on these routes, emphasizing the airline's focus on expanding its international long-haul network.

Highlights

Philippine Airlines' fleet size has increased from 76 to 79 aircraft since October 2022.

The airline reported its first post-pandemic profit, a positive sign for the company's financial health.

Philippine Airlines faced challenges in acquiring new Airbus A350 or Boeing 777 aircraft due to high demand post-pandemic.

The airline has ordered new A350-1000s and is considering replacements for its A330 fleet in the coming years.

Philippine Airlines' fleet includes a mix of aircraft such as De Havilland Canada Dash 8-400s, A320-200s, A321-200s, and A330-300s.

Some aircraft, like the Dash 8 turboprops, are operated by the airline's regional subsidiary, PAL Express.

No aircraft were retired since the last examination, but some were reactivated from storage.

A Boeing 777-300ER previously operated by Garuda Indonesia was added to the fleet in March 2024.

The airline removed four A350-900s in late-2020 and early-2021, which were later acquired by Lufthansa.

Philippine Airlines posted an operating income of $297.2 million and a total comprehensive income of $196.9 million for 2022.

The airline's 2022 revenue showed a 112% increase compared to 2021, attributed to lifted travel restrictions.

Airline President Captain Stanley Ng expressed gratitude for customer support and a commitment to fleet upgrade and expansion.

The airline is experiencing difficulties in expanding its widebody fleet due to supply-chain issues and competition for aircraft.

Philippine Airlines has committed to ordering nine Airbus A350-1000s, with a configuration for 380 passengers.

The A350-1000s are intended for non-stop transpacific and transpolar routes, connecting the Philippines with the US, Canada, and Europe.

The airline is considering replacement options for its A330-300s, with an average age of over 10 years, in the next few years.

The A330neo series could be a potential replacement for the older A330s, as seen with other carriers in the region.

The reactivation of A330s and the addition of 777-300ERs will help Philippine Airlines increase capacity in the short term.

Transcripts

On the surface, not much has changed with  the fleet of Philippine Airlines since our  

last deep dive into this carrier  and its collection of aircraft.

When we put out a video in October 2022 on this  airline, it had 76 aircraft. Now, about one and  

a half years later, it has 79. Since the last  Philippine Airlines fleet examination, we’ve seen  

the airline log its first post-pandemic profit. No  doubt good news for executives working in Manila!

At the same time, however, we’ve also seen  reports that the airline was facing difficulties  

in finding available Airbus A350 or Boeing  777 aircraft to meet the post-pandemic demand.

As a result of the struggle, it has placed  an order for brand new A350-1000s while  

reportedly considering newer replacements  for its A330 fleet in the next few years.

Let’s take a look at all  of this for today’s video!

The Philippine Airlines fleet at a glance

According to data from ch-aviation.com, Philippine  Airlines has the following aircraft in its fleet:

11 De Havilland Canada Dash 8-400s 

15 A320-200s 22 A321-200s 

8 A321neos 11 A330-300s 

2 A350-900s 10 777-300ERs

Notably, some aircraft - namely all of the  Dash 8 turboprops and some of the older A320  

and A321s are technically operated by the  airline’s regional subsidiary, PAL Express.

So what has changed since  our last fleet examination  

in October 2022? Well, not much actually.

It appears that zero aircraft were retired while  some aircraft were brought out of storage and  

reactivated. Some of these aircraft, though  having been physically stored, may have been  

listed as part of the fleet in 2022 anyways. Reactivated aircraft include a Dash 8 that  

had been stored in North Bay, Ontario,  Canada, as well as two Airbus A330-300s  

that had been stored at various facilities  in Europe over the past several years.

The airline also added a Boeing 777-300ER in  March 2024 that was previously operated by  

Garuda Indonesia. The airline is due to  add another one of these ex-Garuda 777s  

quite soon and so fleet numbers may  change slightly in the near future.

As we mentioned in our previous video on  Philippine Airlines, the carrier had removed  

four of its A350-900s in late-2020 and early-2021.  These aircraft were scooped up by German carrier  

Lufthansa as it has been pursuing its own  fleet expansion and modernization strategy.

Philippine Airlines might have  regretted its decision to get  

rid of the four A350-900s. Of course,  at the time, it had little choice as  

it was facing bankruptcy due to  the devastation of the pandemic.

However, the rebound in travel has left the  carrier in a much better financial position,  

and in turn searching for  more capacity for expansion.

It was in early April 2023 that we reported  the carrier posting an operating income of  

$297.2 million and a total comprehensive  income of $196.9 million for 2022. This  

news marked the first positive full-year  operating income for the airline since 2019.

2022 revenue was up 112% over revenue posted  in 2021. The carrier said the gain came from  

increased demand after travel restrictions were  lifted. Airline President and chief operating  

officer, Captain Stanley Ng, said the airline  was quote "very grateful for the support of our  

customers” that enabled the airline to achieve  the positive result amidst a challenging year.

Ng also added: "We are even more  determined to upgrade our fleet,  

build more connections to key markets and  offer improved products and services."

Ng was serious about his airline’s  journey of recovery and renewal.

Indeed, in May 2023, we learned that  Philippine Airlines was experiencing  

challenges in expanding its widebody fleet  to strengthen its long-haul operations.

As disclosed by the airline's  president and chief operating officer,  

the airline was facing difficulty in finding  available Airbus A350 or Boeing 777 airframes.

According to Ng, the airline was facing  growth constraints due to supply-chain  

issues and competition with global  carriers for aircraft and spare parts.

At the time, the carrier had just emerged  from bankruptcy proceedings and was on  

the hunt for more widebody aircraft. Ng  said the following to a local newspaper:

"If we can get more planes, we can expand  immediately, but we can't. There's a plan  

to finalize [new orders], but it will  take two years to deliver the aircraft."

Ng also noted it had been challenging  to retrieve grounded planes, with the  

earliest opportunity for the airline  to obtain new aircraft being in 2025.

Seeing clear, blue skies ahead  in terms of market conditions,  

Philippine Airlines has committed  to ordering nine Airbus A350-1000s.

This order began with the signing of a  Memorandum of Understanding (MoU) in May 2023,  

and was converted to a firm order about  a month later at the Paris Air Show.

According to details shared by  Philippine Airlines at the time,  

the carrier will fly the A350-1000 in a  three-class configuration, with business,  

premium economy and economy cabins. In total,  the airline plans capacity for 380 passengers  

on board. While the balance of seating wasn’t  specified, this will be a small step up from  

the carrier’s Boeing 777-300ERs, which seat  370 passengers in a two-class configuration.

The future aircraft are being targeted at  non-stop transpacific and transpolar routes,  

such as those connecting the Philippines  with lucrative destinations in the US,  

Canada, and Europe. Speaking on  this, the airline’s CEO said:

"The Airbus 350-1000's extended range opens up a  world of opportunities and possibilities for us,  

allowing us to connect even more  destinations across the world…Our  

commitment to Philippine tourism and  the economy remains our top priority."

It was also made clear at the time  that the incoming A350-1000s would  

be for fleet expansion and NOT just  for fleet renewal and modernization.

Indeed, in terms of modernization, the A330-300s  will be replaced at some point in the future.  

Their average age at the time of this video’s  production is a little over 10 years. The airline  

notes that replacement options for these will  be considered in the next two to three years.

It will be interesting to see what the  carrier will choose to replace its A330ceo  

aircraft. The clear choice would be  the A330-900 of the A330neo series.

While it hasn’t been the MOST popular widebody  family globally - particularly when compared to  

the success of the Boeing 787 family - we’ve  seen the A330neo operated by several carriers  

in the Southeast Asia region, including  fellow Philippine carrier Cebu Pacific,  

as well as Air Asia and Garuda  Indonesia. Additionally,  

Malaysia Airlines will soon operate  the type having ordered 20 A330-900s.

So, that’s the state of Philippine  Airlines in early 2024. The carrier  

is obviously in a much better position  than it was during the pandemic. Sadly,  

the devastation of the global health  crisis forced the carrier to reduce its  

fleet. This left it in a weak position by  the time the travel market had recovered.

Nonetheless, the reactivation of  A330s and the addition of two more  

777-300ERs will certainly help  with capacity in the short term!.

It will certainly be exciting to see the  carrier operate the A350-1000 in the coming  

years while perhaps also revealing  a replacement for its older A330s.

What do you think of the current state of  

Philippine Airlines? Share your  thoughts by leaving a comment!

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