Financial Round Up
Philippine aviation outlook improves
June 10th 2014
The Philippine aviation sector has witnessed hitherto unprecedented consolidation since 2013. Once a playing field for as many as eight LCCs, the consolidation efforts left the country with three major players only – Philippine Airlines (PAL) in the full-service segment and Cebu Pacific Air and Philippines AirAsia (PAA) in the low-cost segment. Read More »
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Cebu Pacific Air’s profits dropped sharply in 1Q2014, mostly attributed to losses incurred at its recently-conceived long-haul operations unit due to start flights from Manila to Dubai next month.
PAL’s balance sheet has been impacted by ambitious expansion plans that saw the flag carrier resume services to the EU after many years of hiatus imposed by regulatory bodies that had revoked PAL’s licence to fly into European airspace.
PAA, which had acquired Philippine LCC Zest Air last year, continues to be highly unprofitable.
