PAL REPORTS TURNAROUND TO $15 MILLION PROFIT IN Q3'10
MANILA, FEBRUARY 21, 2011 (TRIBUNE) For the third quarter of its fiscal year ending December, flag carrier Philippine Airlines (PAL) reported posting a modest gain of $15.1 million, an improvement over the previous year’s same quarter total comprehensive loss of $22.9 million.
However, the rising cost of jet fuel, which continues to be the airline’s single biggest expense item, looms as a threat to the flag carrier’s continued profitability.
In a filing with the Securities and Exchange Commission (SEC) last Friday, PAL reported revenues of $397 million, up by 21 percent from the same period which totaled $327.4 million in 2009.
During the quarter ended December 2010, the airline continued to experience positive results in both passenger traffic volumes as well as in yields particularly in its international operations.
Generally, the industry was in a recovery mode as demand picked up from the global slump the year before.
Alongside revenue growth, total expenses rose as well by 11 percent to $381.8 million.
Jet fuel costs increased by 19 percent from an average price per barrel of $94.56 to $100.96 for the same quarter period in 2010.
With jet fuel prices on the rise again, PAL said any sustained upward trend could wipe out all the gains the flag carrier has so far generated.
The airline must, therefore, continue looking for ways of growing its revenues while rationalizing costs, the airline said in a statement.
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