Philippine Airlines reports 2014 profit

Aviation Updates Philippines - National flag carrier, Philippine Airlines, recently reported its 2014 profit which ended on December 31, 2014. According to Philippine Airlines, it told the Philippine Stock Exchange on Thursday that it closed 2014 with a net profit of P129.74 million due to stronger passenger volume.

According to the Centre for Aviation's report, Philippine Airlines' operating revenue increased by 80.3% to P100,954 million. Its operating costs increased by 60.3% to P98,581 million. The profit before tax greatly increased to P289.1 million compared to a loss of P12,000 million.

Philippine Airlines' net profit swung to P127.3 million compared to a loss of P11,648 million in 2013. Losses in 2013 were probably due to the low volume of passengers flying with the airline.

Others:

• Total assets: P109,222 million (USD2460 million);
• Total liabilities: P105,537 million (USD2377 million).

The airline recently announced the purchase of two Airbus A321neo for flights in the Philippines, on top of the 54 Airbus planes it had ordered in a 2012 re-fleeting programme which costs more than $7 billion, Bangkok Post reported.

“PAL’s outlook is not all gloom as the Philippine market is now relatively strong, boosted by a reduction in the number of domestic competitors, the restoration of Category 1 and a relatively strong economy. But PAL first needs to adjust its fleet plan to a more rational level and get the right mix," Centre for Aviation, the independent think-tank said.

"I hope we should be able to sustain the positive results during the first two months," Philippine Airlines President Jaime Bautista said. He desires to sustain its profitability this year, despite strong competition with other Philippine carriers such as Cebu Pacific and AirAsia.