The operator of Philippine Airlines said Tuesday it incurred a net loss of P904.7 million in the first quarter on costlier jet fuel prices and higher aircraft maintenance expenses.
This was a reversal of the P2.71-billion income that PAL Holdings Inc. booked in the same period last year.
PAL Holdings, which is led by tycoon Lucio Tan, said revenues climbed 14.4 percent to P33.3 billion from last year’s P29.12 billion, while expenses jumped 32.4 percent to P34.4 billion from P25.94 billion.
The 14.4-percent improvement in revenues was due to the increase in number of passengers, additional flight frequencies and introduction of new routes, the airline company said.
Passenger revenues increased in the first quarter to P27.78 billion from last year’s P24.65 billion, while cargo revenues rose to P1.8 billion from P1.47 billion.
“The increase in expenses was attributable to higher flying operations, maintenance, aircraft and traffic servicing, reservation and sales, passenger service and general and administrative expenses,” PAL Holdings said.
Flying operations expenses climbed 34.5 percent over last year’s P14.09 billion on higher fuel costs and aircraft lease charges.
Fuel costs went up by 52.9 percent due to the ncrease in average fuel price per barrel in 2017 to $76.15 from $58.16 in 2016 and higher fuel consumption as a result of increase in number of flights.
The addition of two Boeing 777-300ER in October and December last year to PAL’s fleet resulted in higher lease charges by P770 million.
Maintenance expenses rose 40.1 percent following higher engine repair and C checks costs incurred this year.