thrust clb, what airline wasn't hit by the fuel crisis a few months ago? Fuel suddenly surges 96%... what airline could possibly survive that for long?
On the positive side, the airline's outlook seems to be healthier now than it was a few months ago now that its main cost--fuel--has come down from ridiculous levels. In fact, it might even be cheaper now than the time Bupak posted the phenomenal P2B net income for 2007.
Commercial Planning seems unfazed. They firmly believe growth prospects are still there for the airline even with the present financial crisis. Gross revenues and passenger numbers are still climbing, so they must know something we don't.
The loss was blamed mainly on two things: fuel cost and foreign exchange losses. Fuel costs went up from somewhere in the P3B-plus range in 2007 to over P6.5B. On the foreign exchange side, from P40-$1, it is now P50-$1, a foreign exchange loss of over 20%. Which meant that dollar-denominated obligations the airline had to pay suddenly became over 20% higher. Double whammy!
Yet if bupak revenues weren't growing, the airline would actually be posting over P3B in losses from fuel cost and forex loss alone. But it isn't.
So... let's keep fingers crossed that the spike in fuel prices and the foreign exchange losses are not a recurring thing for the airline. Or else those cars standing in the parking lot may need refinancing, and not for new ones!
