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Thursday, August 18, 2011

PAL books $10.6-m loss on increased crude prices

Manila Standard Today
August 18, 2011
By Jeremiah F. de Guzman

Philippine Airlines said Wednesday it posted a loss of $10.6 million in the quarter ending June this year due to skyrocketing fuel prices and the political turmoil in foreign markets where it has a strong presence.

The loss in the period, which is the first quarter of its fiscal year, was a reversal from the profit of $31.6 million it posted year-on-year.

Operating revenues improved 6 percent to $454.1 million from $428.5 million a year ago, despite a 7-percent decline in passenger traffic.

“The higher yields means PAL sold tickets at higher prices in destinations where there is great demand,” PAL spokesman Cielo Villaluna said Wednesday.

The carrier said problems in the Middle East, North America and Japan from April to June brought down demand for travel during the period.

PAL said the slight boost in revenues failed to offset the 18-percent climb in operating expense to $464.7 million.

Fuel cost, which comprised 45 percent of total operating expenses, rose 36 percent to $210.8 million. Jet fuel prices climbed from an average of $100.47 in April to June 2010 to $138.11 per barrel this year.

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