Philippine Airlines back in the red

MANILA, Philippines —Philippine Airlines said Wednesday it had suffered a fresh loss in its fiscal first quarter due to soaring fuel prices, political turmoil in the Middle East and the Japan quake disaster.

The flag carrier known as PAL said in a statement it suffered a net loss of $10.6 million for the three months to June.

The airline had posted a $31.6 million profit in the same period last year, on the way to $72.5 million profit in the 12 months to March, which was a turnaround from $14.4 million loss in its previous fiscal year.

“The flag carrier attributes the slide to modest revenue growth eroded by significant increases in fuel prices and… political turmoil in the Middle East and North Africa and natural calamities like the Japan earthquake.”

It said operating revenues grew 6.0 percent to $454.1 million, with passenger yields rising 9.0 percent amid sluggish demand that led to a 7.0 percent fall in passenger traffic.

Operating expenses rose 18.0 percent to $464.7 million, with jet fuel costs, the biggest expense, shooting up 36 percent to $210.8 million.

Local rival Cebu Pacific earlier reported that its first half net profit plunged 22.9 percent to 2.44 billion pesos, due mainly to a 50.1 percent spike in aviation fuel expenses.