PAL Holdings Inc losses soar in first quarter

June 5, 2020

PAL Holdings Inc., the operator of Philippine Airlines and PAL Express on Friday said losses ballooned in the first quarter as its operations were severely affected by ''worldwide travel restrictions due to coronavirus disease (COVID-19) outbreak. ''

Total comprehensive loss amounted to P10.72 billion  in the January to March period, up by 17,525 percent from last year’s same period total comprehensive loss of P60.81 million.

The company blamed the huge increase in losses to “worldwide travel restrictions due to coronavirus (COVID-19) outbreak.”

PAL Group operations were halted since March 15 after the government implemented an enhanced community quarantine (ECQ) to contain the spread of COVID-19.

Consolidated revenues for the first quarter amounted to P32.07 billion, 18.3 percent lower than the P39.24 billion recognized in 2019.

Reduction in revenues was mainly due to a 21.4 percent  drop in passenger revenues as a result of flight cancellations in March due to COVID-19 outbreak.

Passenger revenue amounted to P27.01 billion in the first quarter, down from P34.37 billion in the same period last year.

Cargo revenues also dropped to P1.89 billion, down by 14 precent to P2.20 billon.

Consolidated operating expenses increased to P38.63 billion, 5.2 percent higher than last year’s same quarter total of P36.71 billion, mainly due to the increase in flying operations expenses..

This was offset by the decrease in other group’s operating expenses due to reduced flight operations during the quarter.

Total other charges decreased to P2.73 billion mainly due to lower financing charges as a result of payment of loans.

Last year, PAL Holdings recorded a net loss of P10.31 billion, higher by 138 percent from P4.33 billion net loss in 2018.  The company also posted a net loss of P7.33 billion in 2017. DMS