MANILA, Philippines – PAL Holdings Inc., the parent company of flag carrier Philippine Airlines, returned to profit in the second quarter of the year on the back of higher sales from its new routes.
In a disclosure to the stock exchange, PAL Holdings said its net income from April to June 2014 significantly jumped to P1.5 billion from a P1.1 billion loss last year.
The company reported that its total revenues for the second quarter grew by 47.4 percent to P27 billion from the P18.5 billion booked in the same period last year.
Second quarter revenues were also higher than the P21.65 billion posted in the previous quarter.
PAL Holdings attributed the growth to the favorable passenger revenue performance with the launch of new routes to London, Abu Dhabi, Dammam, Riyadh, Canton, and Haneda.
The company’s net income for the first half of the year, meanwhile, stood at P560 million. Its full-year target for 2014 is P1.34 billion.
Its consolidated total comprehensive income for the first six months of 2014 reached P361 million, or a 172 percent jump against the total comprehensive loss of P499.8 million in the same period last year.
Total revenues in the first half grew 164 percent to P49 billion from last year’s P18.5 billion.
PAL Holdings said passenger revenues contributed the biggest share, making up 83.8 percent of total revenues.
PAL president and chief operating officer Ramon Ang has expressed confidence that PAL will be profitable this year after booking a net loss of over P11 billion in 2013.
He said 2014’s strong performance will be driven by brand new aircraft and new routes to the US and Europe.
Ang, who is also president of San Miguel Corp., earlier said his group is in talks with Lucio Tan’s group with respect to their equity stakes in PAL Holdings Inc., Philippine Airlines Inc. and Air Philippines Corp.
He said SMC is hopeful that their bid to buy out the Tan group in PAL will be completed within the third quarter so as not to derail ongoing improvements in the airline’s financial performance.