PAL Holdings incurs P4.95 B net loss in Jan–Sept

The parent firm of Philippine Airlines (PAL) reported a net loss in the first nine months due to higher expenses and fuel costs.

A filing to the Philippine Stock Exchange showed PAL Holdings Inc. incurred a net loss of P4.95 billion in the January to September period, a reversal of the P2.60 billion net income reported in the same period last year.

Revenue rose 15.6 percent to P98.63 billion as of end-September from P85.35 billion in the same period a year ago.

“The increase was attributable to the growth in passenger and cargo traffic as well as ancillary revenues, resulting from additional flight frequencies and introduction of new routes,” PAL Holdings said.

Total expenses went up 27.3 percent to P103.82 billion in the January to September period from the previous year’s P81.55 billion.

“The increase in expenses is attributable mainly to higher flying operations, maintenance, aircraft and traffic servicing, passenger service, reservation and sales and general and administrative,” PAL Holdings said.

Flying operations expenses, in particular, climbed 32.5 percent to P56.80 billion as of endSeptember from the P42.86 billion in the same period last year mainly due to higher fuel costs.

Fuel costs climbed 50.4 percent due to the increase in average jet fuel price per barrel to $73.92 this year from $65.90 last year and addi- tional flights operated during the period.

Maintenance costs rose 33.5 percent to P14.43 billion as of end-September from P10.81 billion in the previous year as PAL had more engine and aircraft repairs, higher aircraft utilization, as well as additional aircraft deliveries.

Aircraft and traffic servicing expenses grew 19.3 percent to P12.67 billion in the first nine months from P10.62 billion in the same period a year ago due mainly to the increase in ground handling charges and landing and take-off fees as PAL operated more flights.

Passenger service expenses reached P9.17 billion as of end-September, 22.3 percent higher than the P7.50 billion in the previous year due to the increase in passengers carried and flights operated.

Reservation and sales also went up to P7 billion from January to September compared to P5.97 billion in the same period last year due to the rise in booking fees and incentive commissions.