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PAL expects to report profit in FY2011 despite rising fuel

17-Mar-2011 11:10 AM

Philippine Airlines Chief Financial Officer Jose Gabriel Olives stated the carrier expects to report a 10% to 15% year-on-year increase in revenue and a “very small” profit in 4QFY2011 ending 31-Mar-2011 although it will be below its expectations due to rising cost of fuel (CBN News/Manila Times, 17-Mar-2011). PAL President Jaime Bautista also stated the carrier has reported single-digit increase in passenger traffic during the quarter so far and “as we projected, revenue went up since January and March are peak months”. For the full year, the national carrier is expecting revenue to reach USD1.6 billion and does not expect to return to a net loss. For the three months ended 31-Dec-2010, PAL reported a 21% jump in revenues to USD397 million and a net profit of USD15.1 million, compared to a loss of USD22.9 million in the previous corresponding period.

Philippine Airlines: “January is a money making month, February is a losing month and March is more or less breakeven. As we projected, revenue went up since January and March are peak months. But the price of fuel went up as well by USD10 per barrel. This could hurt us, For every USD1 increase in fuel prices our increase in fuel expense is USD500,000,” Jaime Bautista, President. Source: CBN News/Manila Times, 17-Mar-2011.