MANILA, Philippines - The country's flag-carrier Philippine Airlines (PAL) expects fiscal year 2010 to be slightly better than 2009 as demand for international travel increases.

Company president Jaime Bautista said PAL would likely break even this year, rebounding from an expected loss in fiscal year 2009, which ends this March.

"Revenues this year should be closer to the $1.4 billion to $1.5 billion we expect for 2009," he said.

PAL officials earlier said the decline in international passengers probably pulled down revenues for fiscal year 2009 to $1.4 billion to $1.5 billion from $1.6 billion in 2008.

But Bautista said an improvement was expected in 2010 as the global economy recovers, and as the airline adds 2 new destinations: Brisbane and Riyadh.

PAL now expects international passengers to increase by more than 10% this year.

"We are optimistic. Hopefully, we won't just break even," he noted.

PAL flies to Brisbane on March 17, and Riyadh on March 28.