PAL earns US$72.5-M in 2011 but sees slower months ahead

Philippine Airlines (PAL) today (July 22, 2011) reported a total comprehensive income of US$72.5 million for its fiscal year ended March 31, 2011 — a significant turnaround over the previous year’s US$14.4 million loss.

In a filing with the Securities and Exchange Commission, PAL recognized revenues of US$1.67 billion, 23% higher than the preceding year’s figure of US$1.36 billion. During the year, passenger and cargo traffic grew by 12.4% and 41.8% respectively as the aviation industry rebounded from the global slump the year before. Increases in passenger yields also complemented the growth in traffic volume.

Total expenses for the year totaled US$1.61 billion, up 19% from last year’s figure of US$1.35 billion. Jet fuel, which continues to be the airline’s biggest expense, rose by US$142 million or 29.9%. During the 12-month period from April 2010 to March 2011, jet fuel prices averaged at US$102.89 per barrel compared to US$86.94 per barrel a year ago.

While PAL is pleased with its recent positive performance, the airline said in a statement that it remains watchful of the year ahead as fuel prices continue its upward trend. It also noted a gradual slowdown in traffic demand especially for leisure travelers.

Fuel price volatility, the devastating earthquake and tsunami in Japan and political unrest in the Middle East and North Africa also pose a serious threat to the flag carrier’s fragile bottom line.