Philippine Airlines Cuts fuel surcharges.

This is from the Tribune (Manila) . Maybe we should have bought our tickets for next March later! However, we bought them before the surcharge went on so we didn't lose from that. It is good that jet fuel will go down considerbly at least for a while. The airlines were getting a double whammy from sky high fuel prices and now from reduced travel because of global economic conditions. So far PAL has made profits up until March this year but much reduced from the year before. With reduced costs now it could perhaps turn a profit this next March.


Lower fuel costs enable PAL to cut surcharges
10/23/2008
The Philippine Airlines (PAL) said yesterday it was cutting fuel surcharges for every international return flight by as much as $20, due to 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 our fuel-cost savings,” said PAL president Jaime Bautista.
Bautists said more adjustments will 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 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 financial year ending March 31, 2008, dramatically down from $130.5 million the previous year. AFP