But Revenues dropped by 12%
15 August 2009
Manila - Philippine Airlines reported yesterday that its net profit for the first quarter of fiscal year 2009 fell 21.29% or more than a fifth it earned in the same period last year equivalent to $35.5 million.The airline cited decreasing yields and dwindling international passenger traffic which account to almost 78% of its revenue generation. The cause of its revenue shortfall is attributed to global recession affecting legacy airlines worldwide and travel fears over the swine influenza outbreak.
The low yield is attributed to the airline's decision to cut fare prices to international destinations to stimulate travel demand and consequently earned its way as one of few world airliners to register profit during the period. International Air Transport Association (IATA) has already projected that the combined losses of all member-airlines for the year would reach $9 billion. Meanwhile, its domestic operations enjoyed double digit growth amidst global uncertainty.
PAL said total revenues for the quarter dropped by 12% to $394 million against the 2008 level of $446.9 million. The airline's expenses was relatively lower by 11% to $358.5 million mainly due to lower fuel prices.
Meanwhile, PAL took delivery of its third reconfigured B747-400 aircraft equipped with enhanced cabin amenities that include Recaro "lie-flat" Business Class seats and modern inflight entertainment systems. It seeks to complete the reconfiguration of all its B747 this year.
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