MANILA: Philippine Airlines’ parent firm said it had returned to profitability for the first time in three years as passenger yields improved and fuel and other costs were reined in.

In a filing with the Philippine Stock Exchange, PAL Holdings reported an after-tax net profit of 129.74 million pesos ($2.93 million) in its fiscal year to December 31.

The annual profit was PAL Holdings’ first since March 2011, the company said in a statement.

“Our encouraging performance in 2014 signals that PAL has now turned the corner,” Jaime Bautista, president of both PAL and PAL Holdings said in the statement.

PAL Holdings recorded a net loss of 11.85 billion pesos in its previous fiscal year, according to the exchange filing.

PAL Holdings said the previous three years had been difficult as it grappled with industrial unrest, surging fuel prices, major natural disasters in key international and domestic markets, and robust competition.

In 2011 it cut 12 percent of its international flights, 30 percent of domestic flights and laid off nearly 40 percent of its staff to cut costs.

Last year, operating revenues nearly doubled to 100.9 billion pesos as passenger revenues soared, the company said.

While expenses also surged as PAL added 19 aircraft, the re-fleeting allowed it to retire 16 ageing wide-body aircraft, trimming its biggest costs of fuel and maintenance, it added.

The US decision to lift aviation safety restrictions on Philippine carriers was also key, it said.