MANILA, Philippines – Philippine Airlines’ (PAL) listed parent firm returned to black in 2014, reversing years of recorded losses.
In a financial report submitted to the Philippine Stock Exchange (PSE), PAL Holdings Inc. said it booked a net income of P129.74 million ($2.92 million) in 2014, reversing the P11.85 billion ($266.71 million) net loss recorded end-December 2013, covering the first 9 months of its 2013 fiscal year.
Starting 2014, PAL Holdings shifted to calendar year from fiscal year ending March.
PAL Holding’s total revenues reached P100.95 billion ($2.27 billion) in 2014, 80.3% higher than the P55.98 billion ($1.26 billion) in the first 9 months of its 2013 fiscal year due to higher passenger and cargo revenues.
Passenger revenues reached P81.75 billion ($1.84 billion), an 81% share in total revenues versus P45.4 billion ($1.02 billion), as PAL flew 9.6 million passengers last year.
Cargo revenues reached P7.84 billion ($176.45 million) or 7.8% of the total revenues.
Other revenues from ancillary business, as well as lease income reached P11.36 billion ($255.68 million) for an 11.2% share.
Higher operating expenses
PAL’s total operating expenses climbed 60.3% to P98.6 billion ($2.22 billion) last year from P61.5 billion ($1.38 billion) for 9 months ending December 2013. This is attributed to higher costs for flying operations, aircraft and traffic servicing, passenger service, and reservation and sales.
Flying operations expenses, which include jet fuel costs remained PAL’s biggest expense, surging 60% to P38.8 billion ($873.28 million) in 2014 versus fiscal year 2013’s P24.25 billion ($545.57 million.
The average jet fuel prices increased $127.92 per barrel in 2014 from the previous year’s average of $127.74 per barrel.
Aircraft and traffic servicing expenses hit P10.94 billion ($246.12 million), while passenger service expense reached P7.48 billion ($168.28 million), and reservation and sales expense hit P6.2 billion ($139.53 million).
PAL President Jaime Bautista earlier said the airline hopes to stay in the black in 2015 amid the strong competition in the aviation industry.
He pointed out that the airline’s financial performance would be boosted by the launch of new international routes, including the revival of certain domestic destinations.
After launching new routes such as London, Abu Dhabi, Dammam, Riyadh, Canton, and Haneda, Japan in 2014, PAL returned to New York via the John F. Kennedy international Airport on March 15 after an 18-year absence.
PAL is also set to fly to Jinjiang in China and to Port Moresby in Papua New Guinea soon.
In March, PAL announced that it was buying two new Airbus A321 NEO planes as part of its refleeting program. – Rappler.com
$1 = P44.43