PAL to focus on revenues, solving labor issues

By EDU LOPEZ
August 24, 2010, 4:03pm
Manila Bulletin

While the aviation industry is showing signs of slow recovery, the Philippine Airlines (PAL) remains focused on continuing efforts to generate more revenues and control costs.

PAL President COO Jaime Bautista said PAL must “swallow bitter pills” and handle its labor issues with “utmost care” to survive amidst the difficult and cut-throat operating environment.
The flag carrier posted an 11 percent decline in income to $31.6 million for its peak months April to June 2010 compared to the same period last year.

Despite encouraging numbers on account of the peak travel season, Bautista said PAL is bracing for lower passenger volumes during the airline’s “lean season” usually between August to November.
PAL reported revenues of US$426.7 million for the first quarter of its fiscal year 2010-11, an improvement of $99 million or 30% over the same period total of US$327.7 million in 2009.
During the first three months of its current fiscal year, the airline 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.

Total expenses amounted to US$ 391.6 million, up by US$ 106.1 million or 37% from the same quarter total of US$285.5 million the previous year.

Jet fuel, which continues to be the airline’s biggest operating expense, rose by US$55 million during the first quarter with fuel prices at an average of US$100.47 per barrel from US$70.28 per barrel in 2009.

The airline also reported a reduction in “Other Income” by USD 47.5 million to US$15.4 million for the first three months this year compared with US$62.9 million for the same period the year before.
During its last fiscal year ending March 2010, PAL reported a net comprehensive loss of US$14.4 million in spite of a US$35.5-million profit during the first quarter.