PAL Holdings Inc., the listed operator of flag carrier Philippine Airlines, saw profit exponentially surge in 2015 as demand for air travel remained robust and as the fall in oil prices gave way to large savings.
PAL Holdings said profit last year soared through the roof at more than 4,400 percent to P5.77 billion from P127.34 million in 2014.
In 2015, revenues also rose 7 percent to P108.1 billion. Passenger revenues delivered most of the gains as PAL also launched new routes.
During the year, PAL introduced new flights to destinations such as New York, Dubai, New Zealand and Port Moresby. It also added domestic stations such as Tablas from Manila and other points originating from Cebu.
As a result, PAL carried 11.9 million passengers in 2015 against 9.6 million in 2014. For 2016, PAL planned to carry 14 million passengers, its president Jaime Bautista said.
Despite the revenue increase, PAL said total operating expenses rose about 3 percent higher to P101.8 billion.
PAL said this was offset by flying operations expenses, the biggest component of which is the cost of fuel.
The decrease in jet fuel prices from an average of $83.64 per barrel in 2015 from $127.92 per barrel in 2014 was tagged as the main driver in the reduction of flying operations expenses by P2.8 billion, the company said.
Last year, PAL also booked “other income” of P1.1 billion as against P693.3 million in 2014. The significant amount of “other income” consisted mainly of the gain recognized from the sale of its investment in Abacus International Holdings Limited to a third party. This was partially offset by the effect of a re-measurement of outstanding fuel deals to fair value in 2015, PAL noted.
PAL is aiming to become a “five-star” carrier by 2020, Bautista said in a previous interview. He said the carrier had firmed up a multiyear strategy to improve services, expand the network and reconfigure existing Airbus A330 aircraft to tap higher yields.