LISTED PAL Holdings Inc., operator of Philippine Airlines (PAL), yesterday reported its comprehensive net loss has ballooned to P10.2 billion in 2019, from the P2.8 billion net loss the previous year, due to higher expenses.
In a filing at the Philippine Stock Exchange, the company said operating expenses dropped mainly due to the reduction of flying operations costs.
“Overall, the expenses and other financing charges which grew significantly because of the impact of the Philippine Financial Reporting Standard (PFRS) 16 on leases overtook revenues, leading to a total comprehensive loss of P10.2 billion,” it said
Revenues rose 3 percent to P155 billion in 2019 from P150 billion in 2018, primarily due to an increase in passengers.
The company introduced several new routes that serve as feeder for the core routes, increasing the number of roundtrips and available seat kilometers.
However, cargo revenues suffered a slight setback in 2019 due to reduced demand for cargo transport, it said.
As of end 2019, PAL flew 16.8 million passengers, slightly higher than the previous year’s 16.1 million passengers.
Amid the coronavirus disease (COVID-19) challenges, the company is exploring new sources of income while implementing cost saving initiatives for 2020.
“The COVID-19 outbreak and the measures taken have caused disruptions to businesses and economic activities, and its impact on businesses continues to evolve. Consequently, the Company’s passenger operations have also been disrupted, resulting in suspension of its flights both for domestic and international routes, until such time that the quarantine period is lifted,” it said.
PAL and PALex have ceased operating regular flights in compliance with the imposed enhanced community quarantine throughout the island of Luzon until April 12, which was further extended to May 15, 2020.
Both airlines continue to prepare for the resumption of flights, although likely on a much-reduced scale of scheduled flights, which will gradually ramp up as demand recovers.
As of end December 2019, PAL has 97 aircraft in its fleet, with 61 operating under PAL and 36 for PALex.
PAL operates in 41 international destinations and 32 domestic routes from six hubs in the country: Manila, Clark, Cebu, Davao, Iloilo and Zamboanga.
