Wednesday March 27, 1:02 PM
Philippine Airlines seen flying into red
MANILA, March 27 (AFP) -
Philippine Airlines (PAL) expects to post a net loss of up to 1.8 billion pesos (35.3 million
dollars) in the current year to March due to the impact of terrorism fears, the flag carrier's
president said Wednesday.
"We think that we will end up the year (with a loss of) somewhere between 1.6-1.8 billion
pesos," PAL president Avelino Zapanta told AFP-owned financial news service AFX-Asia.
In the previous year, the airline made a net profit of 436.5 million pesos.
Reduced passenger traffic following the September 11 terrorist attacks in the United States,
as well as travel warnings about the Philippines issued in some major tourist markets, would
push PAL into the red, he added.
Zapanta stressed that the expected loss would be significantly lower than the airline's
worst-case prediction late last year of a 2.7 billion peso net loss.
PAL incurred a net loss of 2.1 billion pesos between September and November last year, he
"Starting December, things started to change for the better so we think that we will not get
anywhere near that worst case scenario," he said.
"What made things worse is the negative travel advisory by Japan, which influenced other
countries such as Britain, France, US and Canada. It influenced to a great degree the rest of
The travel advisories followed kidnappings mostly in the southern Philippines, the base for
Abu Sayyaf guerrillas with alleged links to Osama bin Laden's al-Qaeda network