August 20, 2008

Philippine Airlines’ Profit Plummets on Oil Costs

Philippine Airlines' profit plummets on oil costs

MANILA, Aug. 19 (Xinhua) -- Earnings of Philippine Airlines ( PAL) plummeted by more than three-fourths in the past quarter as oil prices continued to hit record levels, the company said on Tuesday.

With operating revenues at 432.4 million U.S. dollars and operating expenses of 420 million dollars, PAL generated a modest operating income of 12.4 million dollars for the quarter which ended June 30 in light of record oil price spikes that hit the airline industry hardest, a substantial decline of 78 percent over the same quarter in 2007, the Philippine flag carrier said in a statement.

The operating revenues for the quarter was 20 percent higher than previous year's level, according to the statement. Revenue passenger kilometers (RPK), the industry yardstick for passenger sales volume, increased by 4.3 percent to 4.73 billion RPKs.

This is a result of PAL carrying 2.16 million passengers on 14, 495 flights for the quarter, up 11.6 percent and 25.6 percent respectively over the same period in 2007. Passenger load factor was a high 80 percent.

Expenses related to PAL's passenger, cargo and related services or operating expenses was up by 38 percent over the same quarter in 2007 mainly due to soaring oil prices which increased by 70 percent year on year, the company added.

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