Airline profits hit by rising fuel prices

MANILA, Philippines — Soaring fuel prices took its toll on the profitability of local airlines in the nine months ending September.

In separate financial reports to the Philippine Stock Exchange, the listed operator of Philippine Airlines (PAL) said the company widened its net loss in the first three quarters, while Cebu Air Inc. saw its net income plunge by more than a third during the period.

PAL reported a total comprehensive loss of P3.29 billion in the January to September period, 42.2 percent higher than the P2.31 billion recorded in the same months last year.

Total revenue for the three quarters, however, jumped 16 percent to P112.07 billion from last year’s P96.58 billion.

The company said total expenses rose by 17 percent year-on-year to P115.3 billion due to increase in jet fuel prices, aircraft lease charges, and flight frequencies, which in turn was partly offset by lower maintenance and repair expenses.

Meanwhile, Cebu Pacific operator Cebu Air reported a 36.5 percent decline in net income for the nine month period to P2.78 billion from P4.38 billion.

The company, however, generated revenues amounting to P54.04 billion, up 7.4 percent from last year’s P50.33 billion fueled by higher passenger, cargo and ancillary revenues.