The parent company of Philippine Airlines said Tuesday net income fell 38.8 percent in 2016 from a year ago on higher expenses.
PAL Holdings Inc. said net income last year amounted to P3.59 billion, down from P5.87 billion in 2015.
The company said revenues climbed 7.2 percent to P116.63 billion last year from P108.80 billion in 2015, on the back of a 7.1-percent increase in passenger revenues.
PAL said it flew 12 percent more passengers last year, as the number of flights also increased 8.5 percent.
PAL introduced new destinations last year, including Kuwait, Jeddah, Doha and Saipan and new services between Cebu and Los Angeles, Cebu and Singapore, Osaka via Taipei, Cebu and Caticlan, and Clark and Caticlan.
PAL carried 13.4 million passengers in 2016, up from 11.9 million in 2015.
Total expenses rose 7.8 percent to P110.87 billion last year from P102.88 billion in 2015. “The increase in expenses was attributable to higher maintenance, aircraft and traffic servicing, passenger service and reservation and sales, offset in part by the decrease in flying operations expenses,” PAL said.
Maintenance expenses rose to P15.03 billion from P10.99 billion because of an increase in the number of engine overhauls and C checks last year .
PAL said the increase in number of flights operated in 2016 resulted in higher aircraft and traffic servicing expenses, particularly ground handling charges and landing and take-off fees by 22.9 percent to P13.46 billion from P11.78 billion.
PAL said the decrease in flying operations expenses to P59.24 billion from P60.87 billion was mainly due to lower fuel expenses.
Jet fuel, which remains the airline’s biggest expense, registered a 14.7-percent decrease from P30.61 billion in 2015. The decrease was a result of the rollback in jet fuel prices per barrel from an average of $83.64 in 2015 to $67.57 in 2016.