Philippine Airlines (PAL) has posted a loss of 1.02 billion pesos ($22.1 million) for its fiscal third quarter, narrowing its losses from a year ago.

The carrier reported a total comprehensive loss of 1.02 billion pesos for the quarter ended 31 December 2009, compared with a loss of 10.3 billion pesos in the corresponding quarter in 2008, it says.

Total revenue for the quarter fell 19.5% to 16.9 billion pesos, while total expenses fell 40.6% to 17.6 billion pesos, says PAL.

The drop in revenues was mainly due to a fall in passenger revenue, says the airline, adding that RPKs fell 23% in the nine months to 31 December 2009 from a year ago.

Expenses fell due to lower flying operations costs, financing charges and other costs, says PAL.

Fuel costs, for example, fell by 52.2% in the nine months ended 31 December 2009.

"Cost cutting measures implemented by PAL in 2009 resulted in the reduction in passenger service, reservation and sales and general and administrative expenses," adds the airline.

Source: Air Transport Intelligence news