The operator of Philippine Airlines said on Wednesday net income jumped by over 700 percent in 2015 mostly because of higher passenger volume and cheaper jet fuel prices.
PAL Holdings Inc. reported a total comprehensive income of P6.46 billion last year from a profit of P786.8 million in 2014.
The company’s total revenues rose 7 percent to P108.06 billion from P100.95 billion.
The company attributed the increase in sales to higher passenger revenues on higher volume.
PAL carried 11.9 million passengers compared with 9.6 million passengers in 2014.
PAL during the year introduced new flights to various destinations, such as New York, Dubai, New Zealand, Port Moresby, and other domestic stations such as Tablas from Manila and other points originating from Cebu.
PAL Holdings’ total operating expenses increased 3.2 percent to P101.8 billion last year from P98.58 billion in 2014.
It attributed the higher expenses to maintenance, general and administrative costs, passenger service, aircraft and traffic servicing expenses, offset in part by the decrease in flying operations expenses.
The decline in jet fuel prices to $83.64 per barrel last year from $127.92 per barrel in 2014 was the main driver in the reduction of flying operations expenses by P2.8 billion.
PAL Holdings registered total flying operations expenses of P60.09 billion last year from P62.92 billion in 2014.
PAL, now wholly-owned by tycoon Lucio Tan after he bought back a 49-percent stake that San Miguel Corp. purchased from him in 2012, signed a memorandum of understanding in February with Airbus for the acquisition of six A350-900 aircraft with the option for another six aircraft for delivery in the years 2018 to 2019.
The acquisition of six Airbus A350 valued at $1.83 million.
PAL plans to deploy the A350 extra wide body, which seats more than 300, on new routes to Nort America and Europe. The first A350 is scheduled to be delivered in 2018.
A350 is the world’s latest generation airliner, featuring the most modern aero-dynamic design, carbon fiber fuselage and wings. With the Trent XWB engines, the A350 operates at 25 percent less fuel burn and emissions, significantly lowering maintenance costs. The extra-wide cabin provides passengers more personal space in all classes.