Philippine Airlines has confirmed that it will begin operation of the Cabin Retrofit on the Airbus A321 in May to announce its network expansion plans at Cebu Hub.
Airlines across the country have not shown the number of A321s that will receive a retrofit, except that they state that they have new seats, entertainment in flight and Wi-Fi in the narrow bodies that serve short-distance international routes.
As of December 31, 2024, there were 22 A321s in operation in the PAL. This included four that operate on the low-cost domestic unit, Pal Express. The aircraft consists of 199 seats.
The renovations will be underway as the airline reportedly face delays in delivery of new aircraft, including the first of the nine A350-1000s ordered in 2023.
Media reports cited airline executives say Pal's first A350 is three months behind and will only be available in the fourth quarter of the year. The 13 A321 airline orders are also reportedly delayed beyond 2026.
PAL also disclosed the acquisition of two middle-aged Boeing 777-300ers, which are said to reduce delivery delays. These work on North American flights.
Separately, airlines are expanding their operations capabilities in Cebu amid expectations of strong summer travel demand.
By April, we will increase the domestic frequencies by about 10% (approximately 287 flights per week), increasing several flights from the De Havilland Dash-8s to the A321S.
Carrier is also expected to expand its international business from Cebu by launching a non-stop flight to Ho Chi Minh City in May. PAL currently flies from Cebu to Bangkok, Tokyo, Osaka and Seoul.
The announcement follows the release of full-year financial results by parent company Pal Holdings.
For the year ended December 31, 2024, PAL Holdings considered the culprit of net income to increase to PS8.1 billion ($141.2 million).
This was a slight drop in revenue to PS17.91 billion, passenger revenue fell 2.9% year-on-year, and cargo and subsidy revenues increased.
Despite a 6% increase in passenger numbers, PAL says it saw “general moderation of growth” with annual inflationary pressures and declines in yields.
Group costs rose 6% to 160 billion ps, with operational costs seeing the biggest increase as PAL strengthens its operations yearly.