The Manila Times
July 27, 2009
PHILIPPINE Airlines (PAL) is mulling over the resumption of flights to Europe after the Philippine air panel completed an air service agreement (ASA) with the United Kingdom, a high-ranking official of the Civil Aeronautics Board (CAB) said.
Carmelo Arcilla, CAB executive director told reporters that the flag carrier expressed interest to fly to the UK. “We cannot discount the possibility that PAL [would be] resuming its flights to Europe,” he said.
The Philippine and UK governments have agreed to 14 weekly flights to Manila and or Clark and to other points in the country.
Since the start of the year, the CAB had completed air talks with Singapore, Brunei, Australia, Kuwait, Bahrain, Qatar and United Arab Emirates.
He said that about 300,000 Filipinos are working in the UK, adding that “there’s really a huge demand.”
PAL’s flight to Europe was discontinued in 1998 after the Asian financial crisis nearly sent the flag carrier into bankruptcy.
At end-March, PAL’s network covered 29 points in the Philippines and 31 international destinations.
It carried an average of 24,508 passengers (14,699 domestic and 9,809 international) and 297 tons of cargo (166 tons domestic and 131 tons international) per day.
The airline held a 45.2-percent share in the domestic market in the fiscal year-ending March, while it cornered 36.6 percent of the trans-Pacific market and 31.6 percent for Asia and Australia.
The airline has 47 operating aircraft, including Airbus 320 and 319, Boeing 747-400, and Bombardiers.
By end 2009, PAL expects the arrival of its two, brand-new and fuel-efficient B777-300ER aircraft from Boeing Co.
PAL earlier reported a net loss of $301 million in the fiscal year ending March from a net profit of $30.6 million in the same period last year.
It said revenues rose by almost 10 percent to $1.6 billion during the period.
-- Darwin G. Amojelar
Tuesday, July 28, 2009
Wednesday, July 22, 2009
PAL Reports $301 Million loss for 2008, Blames fortune on costlier jet fuel
The Manila Times
By Darwin G Amojelar
July 21, 2009
PHILIPPINE Airlines (PAL) said it posted a net loss in the fiscal year ending March this year due to higher fuel expenses.
The Lucio Tan-owned airline company said net loss amounted to $301 million in the fiscal year ending March from a net profit of $30.6 million in the same period last year.
The country’s flag carrier said revenues rose by almost 10 percent to $1.6 billion during the period.
The airline carried close to nine million passengers during the year, which was nearly 20-percent higher than the previous year. It had a load factor of 76 percent.
PAL’s total expenses at end-March this year were higher by 20 percent compared with the previous year as a result of high fuel cost.
In the third quarter ending December, PAL reported a net loss of $219.86 million due to mark-to-market losses from its fuel hedging contracts.
The International Air Transport Association (IATA) said Asian carriers, which included PAL, would register a total estimated industry loss of $10 billion for 2008.
By end 2009, PAL is expecting the arrival of its two, brand new and fuel-efficient B777-300ER aircraft from Boeing Co., Seattle , USA .
Earlier, PAL Holdings Inc. said Trustmark—the majority shareholder of the company—will repurchase up to $143 million zero-coupon notes and bilateral loans due in 2011.
Trustmark owns 84 percent of PAL Holdings.
PAL Holdings’ notes due in 2011 amounted to $160 million while loans outstanding reached $60 million.
The company’s debts will be repurchased between $50 and $58 million, including an early tender premium of $3 million from the price of $47 million to $50 million.
By Darwin G Amojelar
July 21, 2009
PHILIPPINE Airlines (PAL) said it posted a net loss in the fiscal year ending March this year due to higher fuel expenses.
The Lucio Tan-owned airline company said net loss amounted to $301 million in the fiscal year ending March from a net profit of $30.6 million in the same period last year.
The country’s flag carrier said revenues rose by almost 10 percent to $1.6 billion during the period.
The airline carried close to nine million passengers during the year, which was nearly 20-percent higher than the previous year. It had a load factor of 76 percent.
PAL’s total expenses at end-March this year were higher by 20 percent compared with the previous year as a result of high fuel cost.
In the third quarter ending December, PAL reported a net loss of $219.86 million due to mark-to-market losses from its fuel hedging contracts.
The International Air Transport Association (IATA) said Asian carriers, which included PAL, would register a total estimated industry loss of $10 billion for 2008.
By end 2009, PAL is expecting the arrival of its two, brand new and fuel-efficient B777-300ER aircraft from Boeing Co., Seattle , USA .
Earlier, PAL Holdings Inc. said Trustmark—the majority shareholder of the company—will repurchase up to $143 million zero-coupon notes and bilateral loans due in 2011.
Trustmark owns 84 percent of PAL Holdings.
PAL Holdings’ notes due in 2011 amounted to $160 million while loans outstanding reached $60 million.
The company’s debts will be repurchased between $50 and $58 million, including an early tender premium of $3 million from the price of $47 million to $50 million.
Tuesday, July 21, 2009
High fuel, hedging costs take toll on PAL earnings
Philippine Star
By Zinnia B. Dela Peña Updated July 21, 2009 12:00 AM
MANILA, Philippines - Earnings of airline companies worldwide, including flag carrier Philippine Airlines (PAL), took a nosedive this year as rising fuel prices and weak demand created an unprecedented crisis for the industry.
In a filing with the Securities and Exchange Commission, PAL said it booked total comprehensive and mark-to-market losses of $301 million for its fiscal year ending March 2009, mainly due to high fuel and hedging costs.
In recent months, major airlines have also reported massive losses due to their fuel-hedging contracts mainly aimed at shielding them from volatile oil prices. Hong Kong-based Cathay Pacific reported record annual losses of $1.1 billion in 2008 while Japan Airlines posted a net loss of $673 million in 2008-2009. Thai Airways lost $628 million for 2008 and Korean Air a whopping $1.5 billion also last year.
In spite of these tough economic challenges, PAL managed to post a nine-percent rise in its revenues to $1.63 billion at the end of its fiscal year, driven by higher passenger revenues. Increased seat demand enabled PAL to carry 8.95 million passengers during the year – 17 percent higher than the previous level.
Passenger load factor was at 76 percent, with aircraft cabins filled up by Mabuhay Miles frequent flyers, overseas Filipino workers and balikbayan traffic.
Total expenses went up 23 percent to $1.93-billion, largely due to high fuel cost. PAL continues to keep operating expenses in check but fuel remains its most volatile expense.
In an effort to ride out the crisis, PAL has engaged in various product and service enhancements. It introduced “WAY TO GO” and “Seat All You Can” – two new low-fare promos aimed at boosting travel even during the lean months of the year.
PAL is also reconfiguring all its B747-400 aircraft under a $50-million refurbishment program to incorporate a bi-class cabin layout. The new design features lie-flat seats in business class and brand new ergonomically-designed seats all from Recaro of Germany. Passengers in both business and economy sections will likewise enjoy the new, state-of-the-art entertainment systems with individual LCD screens per passenger.
By November 2009 and January next year, PAL will take delivery of two new and more fuel-efficient B777-300ER aircraft.
By Zinnia B. Dela Peña Updated July 21, 2009 12:00 AM
MANILA, Philippines - Earnings of airline companies worldwide, including flag carrier Philippine Airlines (PAL), took a nosedive this year as rising fuel prices and weak demand created an unprecedented crisis for the industry.
In a filing with the Securities and Exchange Commission, PAL said it booked total comprehensive and mark-to-market losses of $301 million for its fiscal year ending March 2009, mainly due to high fuel and hedging costs.
In recent months, major airlines have also reported massive losses due to their fuel-hedging contracts mainly aimed at shielding them from volatile oil prices. Hong Kong-based Cathay Pacific reported record annual losses of $1.1 billion in 2008 while Japan Airlines posted a net loss of $673 million in 2008-2009. Thai Airways lost $628 million for 2008 and Korean Air a whopping $1.5 billion also last year.
In spite of these tough economic challenges, PAL managed to post a nine-percent rise in its revenues to $1.63 billion at the end of its fiscal year, driven by higher passenger revenues. Increased seat demand enabled PAL to carry 8.95 million passengers during the year – 17 percent higher than the previous level.
Passenger load factor was at 76 percent, with aircraft cabins filled up by Mabuhay Miles frequent flyers, overseas Filipino workers and balikbayan traffic.
Total expenses went up 23 percent to $1.93-billion, largely due to high fuel cost. PAL continues to keep operating expenses in check but fuel remains its most volatile expense.
In an effort to ride out the crisis, PAL has engaged in various product and service enhancements. It introduced “WAY TO GO” and “Seat All You Can” – two new low-fare promos aimed at boosting travel even during the lean months of the year.
PAL is also reconfiguring all its B747-400 aircraft under a $50-million refurbishment program to incorporate a bi-class cabin layout. The new design features lie-flat seats in business class and brand new ergonomically-designed seats all from Recaro of Germany. Passengers in both business and economy sections will likewise enjoy the new, state-of-the-art entertainment systems with individual LCD screens per passenger.
By November 2009 and January next year, PAL will take delivery of two new and more fuel-efficient B777-300ER aircraft.
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