Philippine Airlines expects to post a profit in the fourth quarter of 2015 despite losses caused by flight cancellations during the Asia-Pacific Economic Cooperation meeting in Manila in November.
PAL president and chief operating officer Jaime Bautista told reporters the “October and November were really lean months” but the airline managed to register an income.
PAL’s foregone or lost revenue due to Apec cancellations is about $18.75 million or P860 million. The country’s flag carrier cancelled close to 700 domestic and international flights during the Apec meeting, accounting for 45 percent of what PAL would normally operate within a six-day period.
PAL operates an estimated 260 flights a day.
“In terms of passengers and load factor last year, more or less we achieved it,” Bautista said, adding it recorded about 12 million passengers and a load factor of 70 percent in 2015.
PAL Holdings Inc., the holding company of PAL, posted a net income of P6.55 billion in the first nine months of last year from P169.1 million in the same period in 2014.
PAL’s total revenues for the nine-month period reached P81.99 billion, up 10.8 percent from P73.98 billion year-on-year.
PAL said attributed the favorable performance to higher passenger revenues and other sales generated during the period.
Bautista also said PAL was set to operate flights to Kuwait and Jeddah beginning January 17 and 19, respectively, bringing to seven the flag carrier’s total number of Middle East destinations, which include Abu Dhabi, Doha, Dammam, Dubai and Riyadh.
“Opening up new routes to and from the Middle East such as Kuwait and Jeddah enables us to serve the flight needs of our ‘kababayans’ who work overseas. Our flights aim to provide our Filipino compatriots as well as leisure and business travelers the distinct Philippine Airlines brand of service,” Bautista said.
With more than 190,000 Filipino workers in Kuwait and an estimated 300,000 in Jeddah, the flag carrier has a captive market. Passenger load factor on PAL’s newest routes reflect high numbers.
“Jeddah serves as a gateway for pilgrimages to the Islamic holy cities of Mecca and Medina. Pilgrims may now choose PAL for their travels in observance of the Umrah and Hajj,” Bautista added.
PAL’s new A330-300 will be the fleet for the new Mid-East routes.
Bautista earlier said PAL was set to sign a $1-billion deal with an aircraft manufacture for six long-range, twin-engine wide-body jets next month.
“We’ll make the announcement when we sign the purchase agreement,” he said.
Bautista did not identify the aircraft manufacturer, but he earlier said the company was looking at either Airbus A350 or Boeing 787 Dreamliner.