Thursday, August 30, 2007 PAL 'still in the green' as of June
FLAG carrier Philippine Airlines (PAL) reported nearly US$35 million as net income from last April to June.
PAL president Jaime Bautista said the net income for April to June amounted to US$34.5 million or a 101 percent increase from the US$17.2 million that the company posted during the same period last year.
"Overall, the improved performance during the first quarter of (our) current 2007 to 2008 fiscal year resulted in a significant increase in our bottom-line," Bautista said.
Bautista added that the total revenues for the quarter amounted to US$373.4 million, up by 13 percent than last year's level of US$331.2 million.
The April-to-June profit was sparked by higher traffic on PAL's routes, which cover 41 domestic and international points.
Bautista added that the better-than-expected quarterly performance was a result of the airline's ability to capitalize on strong passenger demand during this peak travel quarter.
Likewise, Bautista announced that PAL carried two million passengers higher by seven percent during the period for about 5,771 flights.
PAL is expecting its passengers to reach to about 7.5 million as against the P6.9 million recorded a year ago.
Passenger load factor rose 82.18 percent -- PAL's highest in over a decade -- from 79.32 percent a year ago.
While the company's expenses rose to eight percent to US$338.9 million as PAL continued to grapple with persistently high jet-fuel prices, a non-controllable yet significant cost determinant.
"It confirms that we are now restructured to achieve sustained profitability and validates our decision to exit receivership as soon as possible," Bautista said.
However, the airline kept a tight rein on other expenses, resulting in major savings. For instance, aircraft maintenance, traditionally the second-biggest expense item, saw a substantial drop of US$5.7 million or 12 percent to US$42.9 million for the quarter, as intensive cost-control efforts bore fruit.
PAL is in the process of securing Security and Exchange Commission (SEC) approval for its exit from receivership, which it entered in 1998.
Meanwhile, Bautista noted that PAL is expecting a net loss in the second quarter of the year owing to the lean travel season.
With its re-fleeting program to be completed in 2012, PAL is now taking delivery of 20 brand-new Airbus A320s and Airbus A319s as well as six Boeing 777-300ERs for delivery starting 2009. By year 2012, PAL's total fleet will expand to 43 aircraft. (MSN/Sunnex)
