PAL swings to loss on higher fuel costs

PAL Holdings, Inc. (PAL) reported a P500-million net loss attributable to parent in the second quarter, as operating expenses soared due to high fuel costs.

A regulatory filing showed the listed company that operates Philippine Airlines (PAL) swung to a net loss of P500.9 million in the April to June period, versus the P1.6-billion attributable income during the same period a year ago.

Total revenues, which include passenger, cargo and ancillary revenues, grew 21% to P34.44 billion during the second quarter.

“Passenger revenues improved by P4.862 billion attributable to the increase in number of passengers as a result of additional flight frequencies and introduction of new routes. Cargo revenues also showed a 27.8% growth following the increase in volume of cargo transported in 2017. Ancillary revenues grew as well by 24.4% mainly due to increase in passengers,” PAL Holdings said.

Expenses also increased by 33% to P34.97 billion for the April to June period, primarily due to higher expenses from flying operations; maintenance; passenger service; aircraft and traffic servicing; and reservation and sales.

Flying operations expenses went up by 43% to P19.27 billion during the threemonth period, mainly due to higher fuel costs and aircraft lease charges.

Fuel costs surged 78.2% in the second quarter, as the average fuel price rose to $73.89/barrel in 2017 from $65.87/barrel in 2016, and higher fuel consumption as PAL added more flights.

For the first half, PAL Holdings posted a net loss of P1.62 billion, from a P4.53 billion profit a year ago.

Shares in PAL rose 4 centavos or 0.78% to P5.20 each at the close of trading on Monday. —