For the second consecutive quarter, flag carrier Philippine Airlines wound up in the red due to high fuel prices and modest revenue growth.
In a statement, the firm of Lucio Tan said it posted a total comprehensive loss of $39.4 million in the second quarter of its fiscal year. This is a reversal from the $26.7-million profit it booked in the same period last year.
The airline said total revenues for the July to September period reached $420.4 million—a 4.7-percent improvement over the year-ago figure of $401.6 million.
But this was not enough to offset the increase in total expenses by $84.8 million, or 22.6 percent, to $459.7 million for the second quarter of 2011.
“Jet fuel, which continues to be the airline’s biggest expense, contributed the largest increase in expenses,” PAL said in a statement.
PAL said higher fuel prices led to a $48.3 million or 33.9 percent hike in expenses to $190.8 million from $142.5 million for the current three-month period. Average jet fuel prices rose from $94.92 per barrel to $131.99 per barrel, PAL noted.
PAL said that the remaining months in its 2011-2012 fiscal year would be tougher, citing a recent International Air Transport Association report that indicated airline margins were starting to thin.
IATA said that the global airline industry achieved growth in passenger traffic year-on-year as of September 2011 by an average of 6.3 percent.
“However, operating results in recent months are showing a decline in both passenger and cargo traffic, reflecting a reluctance for both business and leisure travel spawned by problems in the US and European economies,” PAL said.