Philippine Airlines' quarterly income declines 11%

PAL 777-300ER. Photo: By Rob Finlayson.

Philippine Airlines reported net income minus equity changes of $31.6 million for its fiscal first-quarter ended June 30, down 11% from a $35.5 million profit on the same basis in the prior-year period.

The profit drop occurred despite strong passenger and cargo demand. Revenue for the period increased 30% year-over-year to $426.7 million while expenses rose 37% to $391.6 million.

Jet fuel costs lifted by $55 million during the quarter with fuel prices at an average of $100.47 per barrel, up from $70.28 per barrel in the prior-year quarter, the company said.  
President and COO Jaime Bautista said the airline is bracing for lower passenger volumes during the August-November “lean season." PAL is also facing the prospect of major flight disruptions owing to labor strife (ATW Daily News, Aug. 6).

Bautista said that while the airline industry is showing signs of a slow recovery, PAL remains focused on efforts aimed at generating more revenue and controlling costs. Moving forward, he said, PAL must “swallow bitter pills” and handle its labor issues with “utmost care.”