Flag carrier Philippine Airlines (PAL) continued to post a double-digit decline in income this year, reporting a 21% reduction for the first half of the year with P4.613 billion from P5.860 billion in the same period last year.
For the second quarter alone, net income fell 22% to P1.633 billion from P2.083 billion in the same quarter last year, PAL Holdings, Inc. disclosed to the Philippine Stock Exchange.
Revenues for the first half, on the other hand, totaled P57.574 billion, 2.3% higher than last year’s figure of P56.28 billion.
PAL said the increase was the effect of the peso-U.S. dollar exchange rate fluctuations. Had the exchange rate remained at 2015 levels, total revenues would have decreased by P1.596 billion, pulled back by lower passenger and cargo revenues generated during the period as a result of the decrease in yields from passenger seat offerings and the positive effect of the port strike in the U.S. on cargo revenues in 2015.
Revenue from its passage business grew 3.1% in the first six months of 2016 to P48.518 billion from P47.075 billion in the same period last year. Revenue from cargo operations declined 18%, however, to P3.086 billion versus the P3.779 billion earned in the same period in 2015.
PAL recorded a net income of P5.870 billion in full-year 2015, a 4,424.7% increase compared with the P129.740 million earned in 2014, due to higher passenger revenues from increased flights.
For the first quarter of 2016, the airline disclosed a 21% decline in net income to P2.980 billion from P3.777 billion in the same period last year due to lower cargo revenues and higher expenses.
PAL, which flies to 43 international and 30 domestic destinations, 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.
