FLAG carrier Philippine Airlines (PAL) said Thursday that comprehensive income dropped by 25 percent to $81 million in the first quarter from $108.2 million a year earlier.

The Lucio Tan-led airline said the decline was expected as global travel patterns had normalized following the post-pandemic surge of 2023.

"Our positive bottom line confirms that we are on track with our growth strategies, in the areas of fleet growth, route network expansion and service innovations," PAL President and COO Stanley Ng said.

"However, supply chain issues remain and continue to put a strain on our operations, but we are determined to address these challenges," he added.

PAL's operating income amounted to $118.4 million, 12 percent lower year on year, due to an increase in operating expenses.

This was the result of a 13-percent increase in flights as well as sustained industry-wide price hikes on services covering maintenance, ground handling, airport and passenger service charges.

Consolidated revenues grew by 6 percent to $826 million, mainly driven by a 13.6-percent increase in passenger volume.

Passenger revenues grew by 5 percent to $720.9 million, compared to $686.2 million in the same period last year.

Cargo revenues reached $34.4 million, a 4-percent decrease despite a 21-percent growth in cargo volume.

Capital expenditures reached $73 million for pre-delivery payments on Airbus A350-1000s and other aircraft-related requirements.

Philippine Airline's parent firm PAL Holdings Inc.'s share price dropped by 5 centavos to P5.90 on Thursday.