Philippine Airlines first quarter profit down 11%

Philippine Airlines, the country's largest airline fleet size, said net profit in the first quarter ended June 30 declined 11 percent from a year earlier as the higher cost of fuel offset gains from a strong travel season, reported Dow Jones Newswires.

PAL posted a net profit of US$31.6 million in the April-June quarter, down from $35.5 million a year earlier. Revenue rose 30 percent to $426.7 million from $327.7 million during the quarter, but expenses climbed 37 percent to $391.6 million from $285.5 million.

The average cost of jet fuel, which continues to be the airline's biggest operating expense, rose in April-June to $100.47 a barrel from $70.28 a barrel a year earlier, PAL said.

In its last fiscal year ended March 31, PAL posted a net loss of $14.4 million despite posting a profit in the first quarter, which is historically a strong quarter because of the summer holiday period in the Philippines.
(Source:www.cargonewsasia.com)