Philippine Airlines (PAL) has announced that cabin retrofits for its Airbus A321 fleet will commence in May, alongside plans to expand its Cebu hub operations. The retrofit will equip an unspecified number of A321s for short-haul international routes with new seats, in-flight entertainment, and Wi-Fi. As of December 31, 2024, PAL operated 22 A321s, including four with its low-cost unit PAL Express, each configured with 199 seats.
According to media reports that cite airline executives, PAL’s first A350 is being delayed by three months. It will only be delivered in the fourth quarter of the year. The airline’s orders for 13 A321s are reportedly also postponed beyond 2026. PAL acquired two mid-life Boeing 777-300ERs for North American routes to offset this. The retrofit and fleet adjustments aim to maintain service quality amid these setbacks.
Meanwhile, PAL is boosting its Cebu operations to meet the demand for summer travel. Domestic frequencies will rise 10% to 287 weekly flights by April, with some routes upgrading from De Havilland Dash-8s to A321s.
Internationally, Cebu will gain non-stop flights to Ho Chi Minh City in May, adding to existing routes like Bangkok, Tokyo, Osaka, and Seoul from Cebu. The announcements follow PAL Holding’s 2024 financial results, showing a net profit drop to Ps8.1 billion ($141.2 million) from a slight revenue decline to Ps179.1 billion.
Despite a 6% passenger increase to 15.6 million, inflationary pressures and lower yields hit passenger revenue. Expenses rose 6% to Ps160 billion due to expanded operations. PAL’s strategic moves signal resilience amid challenges.
