Flag carrier Philippine Airlines (PAL) reported a 21% decline in net income for the first quarter of 2016 to P2.980 billion from P3.777 billion in the same period last year due to lower cargo revenues and higher expenses.
For the first three months, PAL generated total revenue of P29.124 billion, 4.1% higher than the P27.976 billion of the same period last year, the increase mainly a result of peso-dollar exchange rate fluctuations, PAL said in a disclosure to the Philippine Stock Exchange. Had the exchange rate remained at the 2015 levels, total revenue would have decreased by P609.6 million, PAL noted.
Revenue from cargo operations dropped 31.7% to P1.465 billion from P2.144 billion in 2015.Passage business, meanwhile, improved its revenue 6.8% to P24.648 billion from P23 billion.
While expenses from flight operations fell by P462.308 billion last year due to lower fuel costs, total expenses for the period grew 6.2% from the same quarter of the previous year, again on effects from rate fluctuations, PAL noted.
Meanwhile, the flag carrier is soon providing daily flights connecting Osaka and Taipei.
“PAL is all set to establish the sought after Osaka-Taipei air link on June 25. This will enable the Japanese market to travel to Taiwan with ease, comfort and convenience,” PAL president Jaime Bautista said in a statement.
PAL’s modern 199-seater Airbus A321 aircraft will be utilized on the route.
Passengers on this route may also journey on to Manila after a few days’ stay in the Taiwanese city via PAL’s Taipei-Manila service and connect to any of the domestic and international destinations PAL flies to.
On the other hand, leisure travelers from Taipei may take advantage of this new direct flight to Japan and travel on to Manila or Cebu.
PAL has 10 weekly frequencies between Taipei and Manila and 14 weekly frequencies between Osaka and Manila.
“Our Manila-Taipei-Osaka service provides the convenience of a 3-city route. These triangulated flights provide ease of connections and access to ‘beyond-traffic,’” Bautista explained.
PAL said the new service is made possible through 5th freedom rights held by the Philippines.
Now on its 75th year, the flag carrier flies to 43 international and 30 domestic destinations and is in the midst of expanding its network, modernizing its fleet, and enhancing passenger services as it aims to reach five-star rating in five years.
