PAL’s net income makes marked turnaround

From the Facebook page of PAL

Flag carrier Philippine Airlines reported a 604 percent increase in net earnings for the month of July 2014, amounting to $11 million; as compared with the same month last year, during which net earnings reached only $1.5 million. Furthermore, earnings for the January-July 2014 period, amounting to $18.6 million, saw a reversal from the $55.2-million loss within the first seven months of 2013.

According to the Inquirer, which acquired a copy of the airline’s unaudited financial statements, the marked improvement is a result of the increase in passengers conveyed during the period, an increase in flights and routes offered, as well as a reduction in operational costs due to an increase in efficiency.

Fuel and maintenance cost decreased to 47 percent of total expenses, compared with last year’s 55 percent.

PAL’s continued positive streak has been credited by financial analysts to improvements made by the company’s president and COO Ramon S. Ang to the management system. Ang’s efforts, targeted at stimulating the once financially struggling and underperforming company, included modernizing the carrier’s fleet of planes, increasing its flight network, concentrating on more profitable routes, innovating service, and scrupulous management of company costs, among other measures.

All these efforts – as well factors that developed over the last two years, such as the lifting of the European flight ban on Philippine carriers and the US Federal Aviation Administration’s decision to upgrade the Philippines to Category 1 status – are expected to have a continued positive impact on PAL’s financial performance for the entirety of 2014.