BusinessWorld Online reports that the listed operator of flag carrier Philippine Airlines (PAL) reported a net loss of PHP9.38 billion in the first quarter, more than 10 times higher than the previous year’s losses as travel restrictions caused by the coronavirus pandemic “severely” hit its operations.
In the same quarter last year, its net loss attributable to equity holders of the parent company was at PHP838.17 million.
In a regulatory filing, PAL Holdings, Inc. placed revenues in the first quarter at PHP32.07 billion, 18.3% lower than the PHP39.24 billion posted a year ago, BusinessWorld relays.
Broken down, passenger revenues dropped 21.4% to PHP27.01 billion, cargo revenues decreased 14.1% to PHP1.9 billion, while ancillary revenues grew 18.4% to PHP3.16 billion as well as other sources of revenues, which surged 137.6% to PHP3.43 million.
According to BusinessWorld, PAL attributed the drop in passenger revenues to flight cancellations in March 2020 prompted by the pandemic.
PAL’s total expenses increased 5.2% to PHP38.63 billion from last year’s PHP36.71 billion. The company said the amount was “mainly due to the increase in flying operations expenses particularly fuel expenses as a result of hedging losses,” BusinessWorld relays.
“This however was offset by the decrease in other group’s operating expenses due to reduced flight operations during the quarter,” it added.
PAL’s total other charges went down by almost 10% to PHP2.73 billion from PHP3.03 billion, BusinessWorld discloses.
BusinessWorld adds that the company said its performance in the first quarter “was severely affected by the economic condition of the country.”
“Nevertheless, the group is committed to keep the flag carrier continuously flying in the safest condition even in the midst of COVID-19 pandemic,” it added.
PAL said further that it will continue to assess possibilities available to mitigate the increasing risks it is currently facing.
Philippine Airlines is the Philippines’ national airline. It was the first airline in Asia and the oldest of those currently in operation. With its corporate headquarters in Makati City, Philippine Airlines flies both domestic and international flights. First taking off in 1941, the carrier has grown into a fleet of about 40 aircraft (including five Boeing 747-400s) flying to more than 20 domestic points and about 30 foreign destinations.