PHILIPPINE Airlines (PAL) reported revenues of $426.7 million for the first quarter of the fiscal year covering the months of April to June, an improvement of $99 million or 30% over the same period total of $327.7 million in 2009.
In a statement published on its website, PAL said it benefited from improvements in passenger traffic as well as cargo, reflecting signs of economic recovery worldwide. Higher yields generated per seat offering also complemented growth in passenger demand.
PAL considers April to June its peak months.
Comprehensive income, however, dropped 11% to $31.6 million from what was reported in the same period last year on account of higher jet fuel expenses, the flag carrier said in a filing with the Securities and Exchange Commission.
PAL president and chief operating officer Jaime Bautista said PAL is bracing for lower passenger volumes during the airline’s lean season, usually between August and November.
Total expenses for the first quarter of the fiscal year amounted to $391.6 million, up $106.1 million or 37% from the same quarter total of $285.5 million a year-ago.
Jet fuel, which continues to be the airline’s biggest operating expense, rose by $55 million for the period with fuel prices at an average $100.47 per barrel from $70.28 per barrel in 2009.
The airline also reported a reduction in other income by $47.5 million to $15.4 million vis-à-vis the $62.9 million for the same period the year before.
Bautista said while the aviation industry is showing signs of slow recovery, PAL remains focused on continuing efforts to generate more revenues and control costs. Moving forward, he said PAL must “swallow bitter pills” and handle its labor issues with “utmost care” to survive amid the difficult and cut-throat operating environment.
During its last fiscal year ending March 2010, PAL reported a net comprehensive loss of $14.4 million despite profits of $35.5 million in the first quarter.
