PAL Holdings report 38.3% fall in net losses in 2018

April 14, 2019

PAL Holdings Inc. reported a 38.3 percent drop in net losses last year on higher passenger and cargo revenues.

The parent firm of Philippine Airlines (PAL) posted a comprehensive net loss of P2.8 billion in 2018 from P4.6 billion losses in 2017, a statement late Friday said.

The airline’s consolidated revenues of P150.4 billion, up by 16.2 percent over the last year’s figure of P129.5 billion.

Passenger revenues which contributed the biggest share of 85.4 percent of the total revenues reached P128.41 billion last year from P110.63 billion in 2017.

PAL Holdings said the growth in revenues was due to increase in the volume of passengers carried and number of flights operated.

PAL operated 112,072 flights and carried 15.9 million passengers in 2018 vis-a-vis 103,362 flights and 14.5 million passengers in 2017.

Cargo revenues increased by 21.7 percent to P10.21 billion last year from P8.39 billion in 2017 due to volume and improvement in yields.

Ancillary revenues increased by 14.8 percent to P11.56 billion last year from P8.39 billion in 2017 due to growth in volume of passengers.

PAL Holding’s consolidated expenses increased by 17.8 percent to P155.7 billion last year from P132.2 billion in 2017.

“The increase in expenses was attributable to higher flying operations, aircraft and traffic servicing, maintenance and reservation and sales expenses,” the company said.

PAL Holdings said the increase in flying operations expenses was attributed to fuel costs and lease charges.

Fuel consumption reached P52.3 billion last year from P38.4 billion in 2017.

PAL Holdings said jet fuel prices rose from an average of $ 75.59 per barrel in 2017 to $ 94.38 per barrel in 2018. DMS