PAL to post profit with surcharge approval


By Louella Desiderio | The Philippine Star

MANILA, Philippines — Flag carrier Philippine Airlines (PAL) expects to make modest profit this year, but the inability to recover costs from higher fuel prices may mean ending the year with a loss again.

PAL president and chief operating officer Jaime Bautista said the flag carrier expects to end the year with modest profit to be driven by higher load factor.

PAL, which carried 14.5 million passengers last year, has set a target to serve 17 million passengers this year.

Bautista said the continued increase in fuel prices, however, would take a toll on operations.

“We have reduced our projected profit because the price of fuel has gone up. If price of fuel continues to go up, and we are not able to pass on additional cost to passengers, we may again report a loss,” he said.

PAL had a comprehensive net loss of $129 million last year, a reversal of the $86 million profit in 2016 as expenses rose sharply due to higher fuel costs and the cost of acquiring and maintaining additional aircraft.

PAL’s parent firm PAL Holdings Inc. ended last year with a net loss of P6.47 billion from a net income of P4.93 billion in 2016 amid higher expenses.

Bautista said the approval of the carrier’s petition to impose fuel surcharge would be crucial in achieving profit this year.

“That is why the fuel surcharge is really needed,” he said.

Last December, PAL filed a petition with the Civil Aeronautics Board to impose fuel surcharge worth P51 to P207 to recover the higher costs of fuel. As the price of fuel has gone up by $13 from January to April, Bautista said PAL would be updating the figure and amending its petition.

CAB Hotline

Public Assistance 24/7


Secondary Numbers

NAIA Terminal1 0919-9128457 Laguindingan 0919-9128468
NAIA Terminal2 0919-9128458 Laoag Airport 0998-5864834
NAIA Terminal3 0919-9128451 Legaspi Airport 0919-9128461
NAIA Terminal4 0919-9128470 Mactan-Cebu Int'l. 0919-9128464
Clark Int'l .Airport 0919-9128471 Naga Airport 0919-9128462
Boracay Airport 0919-9128453 Ozamis Airport 0998-5864835
Bacolod Airport 0998-5864828 Pagadian Airport 0998-5864836
Basco Airport 0998-5864829 Puerto Princessa 0998-5864837
Busuanga Airport 0919-9128460 Roxas Airport 0998-5864838
Butuan Airport 0998-5864830 Siargao Airport 0919-9128456
Davao Int'l. Airport 0919-9128469 Surigao Airport 0998-5864839
Dipolog Airport 0998-5864832 Tacloban Airport 0998-5864840
Dumaguete Airprot 0998-5864833 Tagbiliran Airport 0919-9128465
General Santos 0919-9128467 Tugeugarao Airport 0998-5864841
Iloilo Int'l .Airport 0919-9128466 Virac Airport 0919-9128463
Kalibo Int'l. Airport 0919-9128454 Zamboanga Airport 0998-5864842

✆ 852-8967 (CAB Legal and Enforcement Division)

Trunk Lines:
☎ (+632) 853-7259
☎ (+632) 854-5996