Philippine Airlines (PAL) has received its first-ever “BB” credit rating and a stable outlook from Fitch Ratings, reflecting confidence in the flag carrier’s ability to withstand economic challenges despite global fuel market disruptions.
Fitch cited PAL’s strong market position, extensive route network, cost efficiency, and fleet expansion plans as key factors supporting the rating.
The agency expects PAL to maintain a solid market share this year while continuing to generate positive cash flow, even as higher fuel costs and Middle East-related disruptions put pressure on profitability.
Fitch said PAL’s financial strength and liquidity should help offset the impact of rising fuel prices and weaker demand on some international routes.
While the airline’s first-quarter net income slipped slightly to ₱4.28 billion, Fitch expects profitability and passenger traffic to recover once geopolitical tensions ease, with financial metrics normalizing by 2027.
Source: PhilNews24 | June 14, 2026
FITCH MAINTAINS STABLE OUTLOOK FOR PAL DESPITE GLOBAL FUEL SHOCK
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