PAL halts skid, posts income of P489.2M as of June

Philippine Daily Inquirer
August 25, 2012
By Paolo G. Montecillo

Publicly-listed PAL Holdings, parent firm of flag carrier Philippine Airlines, ended the April to June period in the black—following several quarters of losses—on the back of higher revenues and lower fuel costs.

In a disclosure, PAL Holdings said it had posted a comprehensive net income of P489.2 million, a significant turnaround from the P475.1 million-loss in the same three-month period last year. April to June is the first quarter of PAL’s fiscal year.

Total revenues for the first quarter of the current fiscal year amounted to P20.8 billion or 5.8 percent higher than last year’s P19.6 billion.

The increase in revenues of P1.14 billion 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.”

“Revenues also include lease income arising from aircraft operating lease arrangements with an entity under common control,” the airline said, referring to several planes it leased out to sister firm Air Phil Express.

“Growth in passenger traffic particularly on international flights operated had the effect of increasing passenger service expenses to P1.3 billion or by 3.3 percent,” the company said.

Total expenses for April to June 2012 period rose to P20.3 billion, a 1 percent increase over the previous year’s P20.1 billion.

“This was attributable to higher expenses related to maintenance, passenger service, general and administrative and other expenses offset by the decrease in flying operations,” the company said.

The company said income from flying operations improved by P212 million, mainly as a result of lower fuel costs and depreciation of flight equipment, countered by the increase in aircraft lease rentals.

Jet fuel, which remains the biggest operating expense, registered a 3.4-percent decrease over last year’s P9.12 billion. “This was brought about by the decline in average jet fuel price per barrel from $138 in 2011 to $135.6 in 2012,” the company said.