PAL books P489-M net income in Q1

The Philippine Star
August 25, 2012
By Lawrence Agcaoili

MANILA, Philippines - Flag carrier Philippine Airlines, a joint venture between taipan Lucio Tan and diversified conglomerate San Miguel Corp. (SMC), is back in the black in the first quarter of its fiscal year ending June as it booked a net income of P489.2 million on the back of lower oil prices as well as higher passenger traffic.

In a statement to the Philippine Stock Exchange (PSE), PAL Holdings said the income booked from April to June this year was a complete reversal of the P475.1 million net loss recorded in the same period last year.

PAL Holdings reported that the airlines revenues rose 5.8 percent to P20.783 billion in the first quarter of its 2012 fiscal year from P19.641 billion for the first quarter of its 2011 fiscal year on the back of higher passenger traffic.

“The increase in revenues of P1.142 billion during the quarter was primarily due to higher passenger revenues earned brought about by a 6.9 percent improvement in yields generated from passenger seat offerings complemented by the growth in passenger traffic,” the airline said.

It added that revenues also include lease income arising from aircraft operating lease arrangements with an entity under common control.

The company reported that expenses inched up by only one percent to P20.297 billion or the period April to June 2012 from P20.095 billion in the same period last year due higher expenses related to maintenance, passenger service, general and administrative and other expenses offset by the decrease in flying operations.
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Data showed that maintenance expenses jumped 20.9 percent as a result of higher engine and component repair costs incurred during the current period while passenger service expenses climbed 3.3 percent on the back of the growth in passenger traffic particularly on international flights.

Likewise, the airline’s general and administrative expenses went up 7.6 percent due to costs incurred related to the financing and delivery of one Boeing 777-300ER aircraft.

Data showed that the airline’s flying operations improved by P212 million mainly contributed by lower fuel costs and depreciation of flight equipment countered by the increase in aircraft lease rentals.

PAL Holdings said that jet fuel expenses fell 3.4 percent due to the decline in average jet fuel price per barrel to $135.6 in 2012 from $138.00 in 2011 to $135.60 in 2012.