PAL reports surge in net profit to $17.6m<\/p>\n
MANILA (Reuters): Unlisted Philippine Airlines (PAL) posted a
\nnet profit of 792.96 million pesos (US$17.6 million) for the
\nApril-June quarter, up 12-fold from 65.4 million pesos in the
\nsame period a year earlier, according to unaudited results
\nreleased on Monday.<\/p>\n
Revenue totaled 9.3 billion pesos, up 43 percent from 6.5
\nbillion pesos a year earlier. Passenger revenue accounted for 83
\npercent of the total.<\/p>\n
April-June is the first quarter of the company's business year
\nwhich ends in March.<\/p>\n
PAL, the national flag carrier now majority owned by
\nbusinessman Lucio Tan, posted a profit of 44.2 million pesos for
\nthe past year to March, its first profit in seven years.<\/p>\n
PAL last year started a 10-year restructuring program to
\nenable it to repay debt totaling $2.2 billion. The restructuring
\nplan called for reduced routes, the sale of non-performing assets
\nand the spin-off of other businesses such as airline catering and
\nengineering services.<\/p>\n
The airline incurred net financing charges of 1.2 billion
\npesos in the April-June quarter, up 45 percent from 844.87
\nmillion pesos in the same period a year earlier, mainly due to
\nhigher interest charges.<\/p>\n
A large proportion of PAL's debt represents money borrowed to
\nupgrade and expand the airline's fleet of planes before the Asian
\ncrisis struck in 1997. The airline came close to shutting down
\nbecause of the debt overhang and labor problems.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pal-reports-surge-in-net-profit-to-176m-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}