MANILA, Philippines?The country?s flag carrier Philippine Airlines (PAL) reported total comprehensive income of $31.6 million for its peak months April to June 2010, down by $3.9 million or 11 percent from the same period last year.

In a filing with the Securities and Exchange Commission, PAL reported revenues of $426.7 million for the first quarter of its fiscal year 2010-11, an improvement of $99.0 million or 30 percent over the same period total of $327.7 million in 2009.

During the first three months of its current fiscal year, the airline benefited from improvements in passenger traffic as well as cargo, reflecting signs of economic recovery worldwide. Higher yields generated per seat offering also complemented growth in passenger demand.

Total expenses amounted to $391.6 million, up by $106.1 million or 37 percent from the same quarter total of $285.5 million the previous year. Jet fuel, which continues to be the airline?s biggest operating expense, rose by $55 million during the first quarter with fuel prices at an average of $100.47 per barrel from $70.28 per barrel in 2009. The airline also reported a reduction in ?Other Income? by $47.5 million to $15.4 million for the first three months this year compared with $62.9 million for the same period the year before.

PAL president and COO Jaime J. Bautista said that while the aviation industry is showing signs of slow recovery, PAL remains focused on continuing efforts to generate more revenues and control costs.

Moving forward, he said PAL must ?swallow bitter pills? and handle its labor issues with ?utmost care? if the airline will survive amidst the difficult and cut-throat operating environment.

During its last fiscal year ending March 2010, PAL reported a net comprehensive loss of $14.4 million in spite of a $35.5 million profit during the first quarter.