Ben McMillan/SINGAPORE
Philippine Airlines (PAL) is claiming a major turnaround from near-bankruptcy with a first-half net profit of a 32.7 million pesos ($800,000).
In a report to the Philippine Securities and Exchange Commission, PAL - which went into receivership in mid-1998 under a massive debt - says the first-half gain has come as its rehabilitation plan takes effect.
Overall revenue for the six months ended 30 September rose to 12.92 billion pesos from 11.62 billion pesos for the same period last year while operating income totaled 2.77 billion pesos, compared with an operating loss of 932 million pesos.
The carrier says its first-half net gain compares with a net loss of 6.11 billion pesos for the same period last year.
Assets
PAL's ongoing rehabilitation effort incorporates the sale of non-core assets, the restructuring of its more than $2 billion debt and the reduction of its fleet to 22 aircraft from 54 aircraft, among other efforts.
The plan was approved by US and European creditors in March after chairman and majority owner Lucio Tan and a group of new investors injected $200 million into PAL. The US Export-Import Bank then withdrew its approval, but recently said it would again back the plan.
A PAL spokesman says from Manila that the carrier's first-half gain comes after it achieved a net profit of 175 million pesos for the first five months but was hit in September by a net loss of 142 million pesos because of rising fuel prices and a weakening peso.
He adds that September is a traditionally lean month for PAL and the carrier is expecting still worse figures for October before conditions improve sharply during the Christmas period, when it will increase services on certain routes including those to the USA.
Source: Flight Daily News
