Airlines seen posting stronger Q2 revenues on travel demand

AIRLINE OPERATORS are expected to record higher revenues in the second quarter amid strong travel demand and higher passenger volumes, analysts said, even as recent first-quarter earnings showed mixed performance across carriers.

- By Ashley Erika O. Jose

"We expect airline companies here to post healthy revenue growth in the second quarter on the back of strong travel demand during the summer," China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

Mr. Colet said the lower inflation rate and the continued strengthening of the peso against the US dollar are likely to encourage more Filipinos to travel during the dry season and holidays.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said a stronger peso and easing global crude oil prices are expected to lower operating expenses of local and international carriers.

The peso closed at P55.51 versus the greenback on Friday, appreciating by 12 centavos from P55.63 on Thursday, based on data from the Bankers Association of the Philippines.

"There is still potential for tourism to grow further locally amid improvements in infrastructure such as more modernized airports and mass transport systems for the coming year," Mr. Ricafort said.

The government is aiming to privatize at least 15 regional airports by 2026 to support its modernization efforts.

PAL INCOME RISES

PAL Holdings, Inc. reported a 20.28% year-on-year increase in attributable net income to P4.33 billion in the first quarter from P3.6 billion a year earlier, driven by revenue growth.