"National flag-carrier Philippine Airlines (PAL) said Tuesday it suffered a 77 percent drop in net profit in its latest fiscal year due to a sharp rise in oil prices.
The country's main airline had a net profit of 30.6 million dollars in its last financial year ending March 31, down from 130.5 million dollars in the previous fiscal year, PAL said.
Operating revenue was up 15 percent to 1.46 billion dollars, while operating income rose 20 percent to 84.3 million dollars in the latest fiscal year, the airline said.
Despite the fall in net profit, PAL, which is controlled by Lucio Tan, one of the country's richest men, still posted its fourth consecutive year of profitability after emerging from an eight-year rehabilitation in October 2007.
Last August, PAL forecast that it would post a net profit of 30 million dollars in its fiscal year ending March 31, 2008."
This has to be one of the biggest profit plunge that i've heard of. The lesser profit is caused by the raising of oil prices. Its amazing how much money they lost. I can imagine that many flights will be dropped in places where little passengers board and that the airplane fare will increase. Another increase in expenses for many people.
SOURCE:http://news.ph.msn.com/regional/article.aspx?cp-documentid=1593985
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5 comments:
Truly it is such a sad story for our Airlines. But who can be blamed? The significant increase in oil prices have a world-wide effect.
a really big loss for PAL. the oil prices are just really high. its hard to earn a profit when you pay big expenses.
I think its time for PAL to find alternatives, there is no way stopping the oil price hike,
wa. how big can the effect have on us?
the casue of this could have been the statement released by the americans that planes in the philippines are un safe. This is the reason why Cebu pacific dealayed its IPO
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