The Philippine Star
February 19, 2011
By Zinnia B. Dela Peña
MANILA, Philippines - Flag carrier Philippine Airlines (PAL) reported a net income of $15.1 million in the third quarter of its fiscal year ending March 2011, a significant turnaround from the $22.9 million loss incurred in the same period a year earlier.
In a report submitted to the Securities and Exchange Commission yesterday, PAL said revenues rose 21 percent to $397 million in the October-December period last year from $327.4 million the previous period on higher passenger traffic volumes and yields particularly in its international operations.
Generally, the industry was in a recovery mode as demand picked up from the global slump the year before.
Despite the positive numbers in the last three quarters, PAL remains cautiously optimistic about its growth prospects given soaring prices of fuel.
The rising cost of jet fuel, which continues to be the airline’s single biggest expense item, emerges as a barrier to the airline’s continued profitability. Jet fuel increased 19 percent from an average price per barrel of $94.56 to $100.96.
With jet fuel prices on the rise again, PAL said any sustained upward trend could wipe out all the gains it has so far generated.
To remain viable, the flag carrier will focus on continuing its cost control initiatives as fuel and maintenance costs remain very volatile.
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