Philippine carriers cut surcharges as oil price declines

Written by Writer on Thursday, October 23rd, 2008

Philippine carriers cut surcharges as oil price declines

The Manila Times
Thursday, October 23, 2008

National flag-carrier Philippine Airlines (PAL) said Wednesday it was cutting fuel surcharges for every international return flight by as much as $20, because of a continued drop in world oil prices.

Surcharges for domestic round-trip flights will also be cut—by around $8—effective early next month, PAL said in a statement.

“We are sharing with our passengers whatever benefits are due us in terms of fuel-cost savings,” said PAL President Jaime Bautista.

He said that more adjustments were to be made in line with recent falls in the cost of oil.

The price of crude fell to less than $70 a barrel in New York trading last week “climaxing a stunning fall fro historic highs just three months ago,” PAL said.

PAL, however, said that despite a softening in oil prices “airlines worldwide continue to bear the brunt of abnormally high fuel prices.”

Last month, the firm said it may revise its forecast of a net profit of $20 million for the fiscal year to March 2009 due to the volatility of oil prices.

PAL made a net profit of $30.6 million in the past financial year ending March 31, 2008, dramatically down from $130.5 million the previous year.–AFP