Manila, April 28 -- Flag carrier Philippine Airlines (PAL) on Tuesday reported a 6.1 percent increase in passenger traffic to 4.30 million in the first quarter of this year, boosting net income by 9.7 percent to USD78.55 million.

"Our first quarter results reflect both the strength of demand for Philippine travel and the disciplined execution of our team," PAL president Richard Nuttall said in a statement.

The Tan-led carrier reported a "healthy operating profit" of USD101.85 million, as revenue gains outpaced higher operating expenses.

Flying operations expense rose by 9.2 percent to USD447.08 million, reflecting higher flight activity, late-quarter fuel price pressures linked to developments in the Middle East, and increased deprecia...