Philippine Airlines profit jumped by 12% in the first semester
Philippine Airlines (PAL) recorded a 12-percent jump in its bottom line for the first semester, propelled by stronger passenger volume.
In a disclosure to the local bourse on Thursday, the air carrier said its net income in the January to June period hit $137 million from $122 million. Operating income in the first half, meanwhile, stood at $146 million.
In the second quarter alone, PAL saw its bottom line soar by 48 percent on stronger passenger volume.
The flag carrier said its net income surged to $60 million from $41 million a year earlier.
This marks the 15th straight quarter of profitability for PAL. Its performance in the April-June period also helped propel its earnings in the first semester. This jumped by 12 percent to $137 million. Operating income in the first half, meanwhile, stood at $146 million.
Revenues in the second quarter alone improved by 6 percent to $831 million.
During the period, PAL flew 4.4 million passengers, up 9 percent from a year ago. Cargo revenues likewise booked a 13-percent growth or $2 million as the company carried 51,200 tons of goods.
PAL’s operating expenses were higher by 5 percent to $761 million due to costlier airport and rental charges, as well as third-party contract costs and depreciation. But thanks to the easing global fuel prices, its fuel costs dropped by 11 percent.
Overall, PAL mounted 57,598 flights in the January to June period, carrying 8.47 million travelers.
“To sustain our momentum in this dynamic operating environment, we will continue to focus on generating healthy revenues, maintaining financial discipline, sustaining operational integrity and providing the kind of exemplary travel experience that our customers deserve,” said Richard Nuttall, president of PAL.
The company said cash generated from its operations “sufficiently covered” its capital spending in the first half. This amounted to $300 million, with the bulk allotted to predelivery payments for aircraft on order and major maintenance works.
Total debt and long-term financial obligations decreased to $1.39 billion from $1.57 billion, as of end-June.
PAL’s fleet consists of 79 aircraft. To further strengthen its operations, the company is gearing up for 22 additional aircraft, with the first Airbus A350-1000 joining its network by the latter part of the year.
