Philippine Airlines: 'Temporary financial setback is worth the price'

Philippine Airlines confirmed (31-May-2018) a comprehensive net loss of USD129 million in 2017, down from a USD86 million profit in 2016. The airline said refleeting, route expansion and service and product innovations required substantial investment and had an impact on the bottom line, in addition to a "pronounced" increase in fuel costs. President and COO Jaime J Bautista said: "We poured the required investment to transform the company. The temporary financial setback is worth the price of becoming a stronger and more competitive airline". The carrier reported a "robust" 7% year-on-year increase in revenues due to a significant increase in passenger numbers and cargo volumes as it expanded its fleet and network. Expenses increased "sharply" due to higher fuel costs and the cost of acquiring and maintaining additional aircraft. Fuel price volatility caused the airline's fuel expense to increase from USD549 million in 2016 to USD749 million in 2017. MRO, aircraft leasing, ground handling, landing and take off fees, passenger food and other expenses also "spiked" in 2017. The airline operated 51,681 round trip services with 86 aircraft in 2017, handling 14.5 million passengers with a 71.39% load factor and 236.1 million tons of cargo. The carrier said it "continues to maintain a strong market share in its international routes despite intense competition with legacy carriers and a growing number of low cost carriers in the Asia Pacific region". [more - original PR]