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Friday, April 18, 2014

PAL's losses widen on costlier jet fuel, maintenance expenses

Losses at Philippine Airlines (PAL) ballooned in the first nine months of its fiscal year ending March amid costlier jet fuel and higher maintenance expenses.

In a disclosure to the Philippine Stock Exchange, PAL Holdings Inc said its losses widened 332.5 percent to P11.85 billion in the April to December period compared with P2.74 billion in the previous year.

The flag carrier’s revenues increased slightly to P55.98 billion from P55.69 billion previously, whereas expenses inched up 5.3 percent to P61.50 billion from P58.43 billion.

PAL Holdings said flying operations expenses accounted for the biggest spending for the period. Jet fuel cost it P24.26 billion, while maintenance expenses reached P7.42 billion.

The airline's aircraft and traffic servicing expenses -- which consist mainly of landing and takeoff fees and ground handling expenses in airports where its planes landed -- amounted to P9.11 billion.

PAL operated 17,372 roundtrip flights from April to December last year.

The Federal Aviation Administration last week upgraded the country's aviation status to Category 1, allowing PAL and other Philippine carriers to mount direct flights and expand their operations in the United States.

The upgrade would translate to a $160 million in annual savings for PAL, according to its president Ramon S. Ang.

PAL operates a total of 26 weekly flights to the US, with frequencies to Los Angeles, San Francisco, Honolulu and Guam.

PAL operates a fleet of 79 aircraft, which consist of six Boeing 777-300ER, four Boeing 747-400, five Bombardier DHC 8-400, four Bombardier DHC 8-300, eight Airbus A340-300, 14 Airbus A330-300, six A321-231, 28 Airbus A320-200, and four Airbus A319-100.

San Miguel Corp is running both PAL and budget unit PAL Express, after Lucio Tan sold a 49 percent stake in both carriers to the diversifying food-and-beverage conglomerate.

Source: Interaksyon

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