DRASTIC cost-cutting measures cut losses at Philippine Airlines by more than 95%.
The flag carrier in a filing with the Securities and Exchange Commission (SEC) said its total comprehensive losses for the fiscal year ending March 2010 dropped to $14.3 million in contrast to a comprehensive net loss of $297.8 million in the previous year.
PAL said weak passenger demand mainly in its international operations and lower fares pushed revenue down to $1.36 billion this year from $1.60 billion the year before.
"Worldwide capacity cuts during the year did not keep pace with declining traffic demand thus exerting significant pressure in pushing down fares and yields," the carrier said in its SEC filing.
Total expenses declined 28% to $1.35 billion, thanks to lower fuel prices, cost cutting and one-time gains.