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.