Pages

PAL nets $72.5M Profit

On 23% revenue jump

July 24, 2011

Flag carrier Philippine Airlines (PAL) earned $72.5-million profit for its 2010 fiscal year ending March, a turnaround from its $14.4-million loss in 2009.

The airline said revenues rose 23 percent to $1.67 billion, supported by growing passenger and traffic volumes of 12.4 percent and 41.8 percent, respectively.

“Increases in passenger yields also complemented the growth in traffic volume,” the airline added. Passenger traffic increased 12.4 percent while cargo expanded 41.8 percent during the period.

The airline was however cautious of its continuing profitability due to volatile factors like cost of fuel affecting the industry.

About 40 percent of PAL’s expenses go to fuel. PAL noted that total expenses for the year totaled $1.61 billion, up 19 percent from last year’s $1.35 billion.

Jet fuel expenses, which continues to be the airline’s biggest spending item, rose by $142 million or 29.9 percent. During the 12-month period from April 2010 to March 2011, jet fuel prices averaged $102.89 a barrel compared to $86.94 the year before.

No comments:

Post a Comment