Airlines PNG on track to deliver profit this year

AIRLINES PNG (APNG) is on track to deliver profit this year amid a proposed merger with national flag career Air Niugini.
APNG result for the half-year ended June 30 this year showed a K9 million positive turnaround on the corresponding period last year.
The airline was tracking ahead of its plan to deliver a profit in the 2010 financial year.
Operating revenue for the period was up 35% to K95.8 million, while direct costs and overheads were up by 15.7% as a consequence of the airline’s increased operational activities.
APNG said the revenue increase was attributed to new long-term contracts that were operating for the full six months and growth in the airline’s domestic regular passenger transport (RPT) operations.
The K6 million loss in the first six months of this year was expected to be offset by the seasonal increase in traffic during the second-half as the market customarily experienced increased passenger demand and profitability, particularly as a result of the higher concentration of holiday periods including Christmas.
The airline said underpinning this year profitable result were:
1) Forecasted annual operating revenue of more than K230 million; and
2) Forecasted 81% increase in charter revenue over last year.