PAL profit soars to P6.1 B

MANILA, Philippines - The parent firm of flag carrier Philippine Airlines Inc. (PAL) saw its net earnings post sharp growth in the first nine months due to higher revenues.

In a report to the Philippine Stock Exchange (PSE), PAL Holdings Inc. said its net profit soared to P6.1 billion as of end-September from P238.1 million a year ago.

The dramatic increase was attributed to the 10.8 percent rise in revenues to P82 billion from P74 billion last year.

“The growth was attributable mainly to higher passenger revenues and other revenues generated during the period,” PAL said.

The company also recorded a 30 percent year-on-year growth in passenger volume for the nine-month period mainly for the Americas, Australia, Japan and Middle East routes.

The interlining arrangement with PAL Express in the domestic sectors likewise contributed to the favorable revenue performance during the current period.

The company’s total expenses, meanwhile, rose 4.6 percent to P76.4 billion the first nine months from P73.1 billion a year ago.

Maintenance expenses, one of PAL’s biggest costs, rose 38.3 percent to P8.3 billion as of end-September from P6 billion last year due to maintenance services for the newly acquired aircraft.

Passenger service expenses climbed 12.5 percent to P6.3 billion in the first nine months from the previous year’s P5.6 billion amid higher costs related to cabin crew benefits and passenger food due given increase in passengers and number of flights.

General and administrative expenses posted a 23 percent uptick to P2.7 billion in the January to September period from P2.2 billion in the same period in 2014 as a result of various fees paid for the financing of three A321 aircraft during the current period and additional obligations incurred.

Reservation and sales amounted to P4.8 billion as of end-September, a 6.7 percent increase from P4.5 billion mainly on account of higher selling expenses incurred to support the growth in ticket sales.