PAL raises domestic fares

PAL raises domestic fares

MANILA (AFP): Philippine Airlines (PAL) said yesterday it
would raise fares 35 percent on major domestic routes, citing the
need to recoup huge operating losses compounded by the fall of
the peso.

The increase, to take effect Wednesday, will affect passenger
fares and freight rates in all domestic destinations also served
by competing airlines, the national flag-carrier said in a
statement.

PAL, whose international operations subsidize the domestic
operations, said the peso's sharp fall since July has caused the
prices of imported aviation fuel and aircraft parts and supplies
to surge.

The company has incurred consecutive operating losses since
the 1993-1994 fiscal year, hampering operations, it said. PAL
operating losses totaled 2.5 billion pesos (US$75.8 million) in
the year to March, the statement said.