PAL posts new profits

Full Tank
Business Mirror
Al S. Mendoza

DESPITE an increase of 19 percent in total operating costs, Philippine Airlines (PAL) still managed to post $72.5 million in profits for its fiscal year ending March.

PAL said in a statement that about 40 percent of the company’s expenses are for fuel, spending $1.61 billion from last year’s total expenses of $1.35 billion.

“While PAL is pleased with its recent positive performance, we remain watchful of the year ahead as fuel prices continue their upward trend,” PAL said.

Rebounding from its $14.4-million loss last year, the Lucio Tan-owned flag carrier’s revenues rose to 23 percent to $1.67 billion.

It said this was due to the growing number and traffic volumes of 12.4 percent and 41.8 percent, respectively.

“Increases in passenger yields also complemented the growth in traffic volume,” the PAL statement said.

Still, fuel expenses remain PAL’s chief concern.

Its fuel costs rose by $142 million or 29.9 percent.  From April 2010 to March 2011 alone, PAL felt the fuel pinch when jet fuel prices averaged $102.89 a barrel compared to $86.94 the year before.

PAL cited as affecting forces the Japan quake and tsunami, plus the political unrest in the Middle East and North Africa, “…factors that can pose a serious threat to the flag carrier’s bottom line.”

Since its corporate rehabilitation in 2007, PAL slowly realized profitability status after also instituting cost-cutting measures bordering on the radical and drastic.

Well, what can I say if not urge, no, force,  Mr. (Jaime) Bautista (PAL president) to take a bow.  The Kapitan’s trust and confidence in you has never been this robust, Jimmy Boy.

PAL sees traffic demand slowdown

Manila Bulletin

MANILA, Philippines — The Philippine Airlines (PAL) is expecting a gradual slowdown in traffic demand especially for leisure travelers in the coming months.

While PAL is pleased with its recent positive performance, the airline said in a statement that it remains watchful of the year ahead as fuel prices continue its upward trend.

Fuel price volatility, the devastating earthquake and tsunami in Japan and political unrest in the Middle East and North Africa also pose a serious threat to the flag carrier's fragile bottom line.

Earlier, PAL reported a significant turnaround in income of US$72.5 million for its fiscal year ended March 31, 2011 compared to the previous year’s US$14.4 million loss.

The airline recognized revenues of US$1.67 billion, 23% higher than the preceding year’s figure of US$1.36 billion.

During the year, passenger and cargo traffic grew by 12.4% and 41.8% respectively as the aviation industry rebounded from the global slump the year before.

Increases in passenger yields also complemented the growth in traffic volume. Total expenses for the year totaled US$1.61 billion, up 19% from last year’s figure of US$1.35 billion.

Jet fuel, which continues to be the airline’s biggest expense, rose by US$142 million or 29.9%. During the 12-month period from April 2010 to March 2011, jet fuel prices averaged at US$102.89 per barrel compared to US$86.94 per barrel a year ago. (EHL)