MANILA, Philippines - The listed parent firm of flag carrier Philippine Airlines Inc. (PAL) managed to stay in the black in the first nine months of the year despite losses in the third quarter.
In a financial report submitted to the Philippine Stock Exchange (PSE), PAL Holdings Inc. posted a net loss of P322.16 million in end-September this year or 72 percent better than the P1.16 billion net loss recorded in end-September last year.
PAL president and chief operating officer Jaime Bautista said the third quarter could be a very good season for major players in the airline industry.
“Normally the third quarter can be a profitable operation because it includes July, August, and September. The lean season starts October and November but December will be a very good month which will recover the losses incurred in October and November,” he said.
The airline said revenues grew 39 percent to P25.03 billion in the third quarter this year from P18.02 billion in the same quarter last year due mainly to the favorable passenger revenue performance.
“This was brought about mainly by the introduction of new routes such as London, Abu Dhabi, Dammam, Riyadh, Canton, and Haneda, Japan in international operations and the enhanced interlining arrangement of PAL with PAL Express in the domestic operations,” PAL said.
On the other hand, expenses rose 25.3 percent to P25.16 billion from P20.07 billion.
“This was largely on account of higher expenses related to flying operations, aircraft and traffic servicing, passenger service, reservation and sales countered by the decrease in general and administrative expenses and maintenance expense,” the airline said.
Fuel costs accounting for the biggest chunk of PAL’s operating expense increased by 25 percent to P9.89 billion brought about by the increase in consumption in 2014 as a result of the introduction of new long haul international routes to London and the Middle East and increase in domestic flights as well as the increase in price the price of aviation fuel to $128.49 per barrel from $126.36.