PAL widens net loss to P10.3B last year

the listed operator of flag carrier Philippine Airlines (PAL) continued to incur financial losses in 2019 on account of high expenses, as well as other charges.

In a filing on Wednesday, PAL HoldM ings Inc. said its net loss attributable to equity holders of the parent ballooned by 138 percent to P10.3 billion from P4.33 billion in 2018. Net loss in 2017 totaled P7.33 billion.

Although consolidated expenses decreased to P151.66 billion last year from P156.46 billion, other charges, including financing charges and aircraft financing, grew to P14.97 billion from P1.45 billion a year prior.

The weak financial performance was made weaker by “unsustainable long term debt and lease obligations of billions of dollars,” PAL Holdings President and Chief Operating Officer Gilbert Santa Maria said in an email sent to select PAL employees, a copy of which was secured by

in February.

While its bottomline suffered last year, consolidated revenues in the period climbed by 2.7 percent to P154.54 billion, propelled by increased passenger revenues following the move to boost flight frequencies and add new routes.

Broken down, revenues from the pasM senger segment jumped to P134.29 billion from P128.91 billion; those from the cargo business slid to P9.37 billion from the previous P10.21 billion; and those from the ancillary segment slipped to P10.69 billion from P11.26 billion in 2018.

For 2020, PAL Holdings is expected to record weaker figures again as its core busiM ness was greatly affected by the coronavirus disease 2019 (Covid-19) pandemic.

The airline also took a massive hit from the eruption of Taal Volcano on January 12 and Covid-19, which resulted in several travel restrictions, dampening people’s deM sire to book flights.

“Unfortunately, the closure of our Manila hub during the Taal Volcano eruption last January, and the ongoing Covid-2019 crisis that shut down all our flights to mainland China, Hong Kong and Macau, has only worsened what was already a difficult situM ation,” said Santa Maria.

These prompted the Tan-led airline to reduce its workforce “in administrative ground personnel across multiple groups through a retrenchment program” in the first quarter.

This was the second part of PAL’s “restrucM turing efforts to reduce overhead costs.” The first one involved a voluntary separation program for eligible long-serving employees.

Currently, PAL has no commercial flights, both domestic and international, from its Manila, Clark and Cebu hubs because of the global health crisis.

PAL Holdings shares went up by 0.14 percent or 1 centavo to finish at P6.95 apiece on Wednesday.