Maniolas

MANILA, Philippines – Moody’s Investors Service has upgraded its outlook on the global airline industry to positive from stable as the sharp drop in fuel costs is expected to bolster financial performance of major players. Moody’s expects the operating profit margins of the industry to settle at 12 percent to 14 percent this year and 11.5 percent to 13.5 percent next year, instead of the estimated 8.5 percent to 9.5 percent for 2014. “US carriers will continue to garner the largest increases, leading to stronger performance relative to airlines based in increasingly competitive developing markets, and in Europe,” Moody’s vice president and senior credit officer Jonathan Root said. In a report titled “Lower Fuel Costs to Boost Operating Profit Margins; Yield Growth Still Constrained,” Moody’s said the outlook reflects expectations for the fundamental business conditions in the industry over the next 12 to 18 months. Passenger demand would also increase due to steady economic growth, higher disposable incomes and rising air travel in developing economies. Passenger demand, which is measured as revenue passenger kilometers (RPKs), is estimated at five percent in 2015 and six percent in 2016. Yields are forecast at flat to two percent in 2015 and one percent to three percent in 2016. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Despite the slower yield growth, Moody’s said its profit margin and RPK forecasts support a positive outlook. With the average price of jet fuel declining $1 per gallon or more in 2015, Moody’s pointed out that Read More …

MANILA, Philippines – The World Wide Fund for Nature (WWF) urged authorities to discuss more climate solutions following the recent visit of Pope Francis. The Philippines is the third most vulnerable country to climate change, a tropical archipelago besieged by no less than 20 storms yearly, the environmental group said. The group cited Super Typhoon Haiyan (Yolanda) which left at least 6,000 dead and caused over $14 billion in economic damage.  “With impacts ranging from stronger typhoons, floods, droughts to forced migration, climate change is a reality that millions of Asians have had to face early. Whether or not the Philippines is a major carbon emitter is beside the point. Many countries which contribute the least to global carbon emissions are the most vulnerable, having fewer resources to cope with disasters,” the group said. As such, the group called on authorities to craft out more proactive – rather than reactive – climate solutions. The Philippine climate adaptation efforts include a four-year, 16-city study to prepare the largest Philippine cities for climate impacts, it said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The group predicts that the Philippines’ global emissions will increase beyond the current 0.35 percent due to economic and population growth coupled with rapid urbanization.  “The world must learn from Typhoons Ondoy, Sendong and Haiyan – lessons paid for in lost lives and livelihoods,” said WWF-Philippines Climate Change and Energy Program head Angela Ibay. She said the Pope’s recent visit to Tacloban shows that the Church cares Read More …