ROSLAN RAHMAN / AFP
Cautious fine-tuning of strategic plans, prudent resource management and a fortuitous industry climate combined to produce Philippine Airlines’ most impressive financial performance – $134.42 million comprehensive income for 2015, which is a six-fold leap over the previous year and a fitting prelude to the flag carrier’s 75th year.
The 2015 income – a 560% jump over 2014’s $20.38 million comprehensive income – represents PAL’s second profitable year after recovering from a $229.71 million loss in 2013.
It marks the airline’s third dramatic turnaround in the last two decades – in fiscal years 2009-2010-2011 ($297.8 million loss reduced to $14.3 million loss, then to a $72.5 million net income) and in 2002-2003 (Php 1 billion loss to Php 372 million profit) – clear proof of PAL’s resilience to rebound from every major slump.
“Carefully calibrated route and fleet expansion programs were augmented by low fuel prices that enabled us to tap the industry’s growth momentum,” said PAL President & Chief Operating Officer Jaime J. Bautista after the airline’s annual stockholders meeting at the Century Park Hotel, June 30, 2016.
To boost its financial condition and further enhance its operations, the flag carrier implemented innovative revenue enhancement programs, cash generation strategies and cost control initiatives.
Five new Airbus A321s joined the fleet and five new international destinations (New York, Jinjiang, Cairns, Auckland, Port Moresby) were added to the PAL network.
The addition of five new aircraft led to an increase in available seat kilometers (ASK) to 41.44 billion (vs. 34.78 billion in 2014), as well as in available ton kilometers (ATK) to 5.80 billion (vs. 4.90 billion).
The airline was able to expand its international network by entering into code-share agreements with WestJet, Turkish Airlines and China Airlines, thus stretching PAL’s reach within Canada, Europe and China. PAL has eight other code-share partners.
The domestic network also expanded with the revival of the Cebu hub, paving the way for more inter-island routes within Visayas and Mindanao, while a new destination was opened – Tablas.
Despite an overcapacity and decline in the global cargo business, PAL maintained its local market leadership in terms of international cargo carriage.
PAL carried more than 177,000 tons of freight in 2015. Cargo contributed 6.7% of total revenues earned. Operating expenses remained almost at previous levels ($2.221 billion to $2.237 billion).
Despite an increase in number of flights, PAL’s fuel bill declined – from $874.45 million to $653.83 million – due to declining fuel prices. PAL’s jets consumed 7.8 million barrels of jet fuel in 2015.
Fuel made up 29.2% of operating expenses, down from 39.4% in 2014. PAL flew 11.93 million passengers (vs. 9.64 million in 2014) while revenue passenger kilometers (RPKs) rose to 28.30 billion (vs. 24.82 billion).
By yearend, PAL had 76 aircraft, which flew 46,153 round-trips. Also in 2015, PAL successfully passed its sixth International Air Transport Association Operational Safety Audit (IOSA) – affirming PAL’s strict adherence to international safety standards.
Last year was PAL’s first full year of operations since the Lucio Tan Group reassumed management control of the airline in the fourth quarter of 2014.