SWOT Analysis of Philippine Airlines 

SWOT Analysis of Philippine Airlines (PAL). Philippine Airlines is a Filipino country’s flag carrier airline; LT Group is its parent company. It came into existence on 03 December 1930 under the name of Philippine Aerial Taxi Company; it adopted the name Philippine Airlines on 26 February 1941. The headquarter of the company is in Pasay, Philippines.

Some of the main products and services of Philippine Airlines are as follows;

• Air travel in 28 domestic and 32 international destinations
• Sumptuous inflight dishes
• Connectivity
• In-flight entertainment
• Luxurious cabin amenities
• Other heartwarming services
• Business Class
• Economy Class
• Premium Class

Key statistical facts and figures about Philippine Airlines are as follows;

• The annual revenue of PAL in 2022 was 139.24 billion Filipino Pesos
• Out of which, the net income of PAL was 11.12 billion Filipino Pesos
• Approximately 5920 employees are working for the company to manage its worldwide operations

Some of the top competitors of Philippine Airlines are as follows;

• PSA Airlines
• Vistara
• Air Wisconsin Airlines
• Garuda Indonesia
• Cathay Pacific Airways Ltd
• Singapore Airlines
• Qatar Airways
• AirAsia

Today, we’ll discuss the swot analysis of Philippine Airlines. It is going to focus on the internal strengths and weaknesses; external opportunities and threats to the Filipino national airline. Here’s the swot analysis of Philippine Airlines as follows;

Strengths of Philippine Airlines 

Some of the main strengths in the swot analysis of Philippine Airlines (PAL) are as follows;

High Safety Standards

PAL became the first airline to receive authorization and recognition from the International Air Transport Association (IATA) by passing the IOSA (IATA Operational Safety Audit) in 2007. In fact, PAL received the highest safety ratings 7 out 7; became the safest Southeast Asian Airline.

Oldest Asian Airline

PAL has been operating its business in the airline industry since 1930, and it is the oldest Asian Airline. It is more than the average lifetime of a person’s life. The oldest airline status helps the company to have a unique competitive edge because the airline has earned the trust and confidence of customers over the years with quality service.

Satisfied Customers

The customer satisfaction rate of PAL is very high due to the heartwarming services that the airline offers to its passengers. Satisfied customers do word-of-mouth marketing of your company on your behalf and recommend it to their friends and acquaintances.

Economical Fares

Compared to other airlines, PAL charges low and economical fares for air transport. The economical fare allows the company to attract the attention of the price-conscious customer market; they would choose PAL for air travel over others.

Large Fleet

PAL has got a fairly large fleet size comprising 47 airplanes. It consists of the world’s leading and most sophisticated airplanes like Boeing 777, Airbus A350, Airbus A330, Airbus A321 Neo, Airbus A321, and Airbus A320. Having such a large and advanced fleet size helps the company to increase the satisfaction level of its customers.

Weaknesses of Philippine Airlines 

Some of the main weaknesses in the swot analysis of Philippine Airlines are as follows;

Low Performance

It is no doubt that Philippine Airlines has made a strong comeback after the pandemic crisis, and the company is making a profit. But the company’s revenue and profitability performance is very low compared to other competitors in the airline industry. In order to take advantage of the market opportunities, PAL should have a strong financial position.

Labor Issues

PAL has had a difficult and conflicted relationship with its employees and labor. The airline laid off its 5000 employees in 1988 in order to reduce costs and deal with the financial crisis. However, the labor union won the case in July 2008, and the Supreme Court stated that it was the failure of the company.

Opportunities for Philippine Airlines 

Some of the main available opportunities in the swot analysis of Philippine Airlines are as follows;

Tourism Growth

The tourism industry has increased due to various travel vlogging trends on trends. It presents a great opportunity for the company to launch various types of travel packages to attract the attention of customers. It would help the company to increase its sale, and earn more revenue and profitability ultimately.

Digitalization

With growth and development in internal, technology, and AI, the world is moving towards digitalization. PAL should consider investing in the digitalization of its airplanes; it is a great business move. It allows the company to upgrade its airplanes to international standards, because that’s what customers want.

Flight Entertainment

Air travel has not just remained a mode of transportation. In fact, it has also become a source of entertainment, luxury, and pleasure; because customers want comfort and quality service while traveling. Therefore, PAL should upgrade its customer service, inflight entertainment, food, and menu service.

Threats to Philippine Airlines 

Some of the main potential threats in the swot analysis of Philippine Airlines are as follows;

Competition

The airline industry has become highly competitive in recent years. There are various airlines offering more or less similar services at almost the same price. It has become highly difficult for PAL to maintain its market position and remain profitable in the presence of a highly competitive environment.

Economic Recession

The oil crisis, unemployment rate, political conflicts, and other international economic issues have caused the global economic recession. When people have got limited disposable income; then they would prefer to spend it on basic necessities rather than luxury traveling across the globe.

Conclusion: Philippine Airlines SWOT Analysis Example Company

After an in-depth study of the swot analysis of Philippine Airlines; we have realized that PAL is the world’s leading and oldest Asian airline. If you are learning about the business of the Filipino national airline SWOT, then you should keep in mind the abovementioned internal and external factors impacting the aviation company.