PAL Holdings Inc., the operator of Philippine Airlines, said net loss slightly declined in the first nine months because of lower operating expenses.
PAL Holdings said total comprehensive loss amounted to P27.19 billion from January to September, down 6.3 percent from P29.03-billion loss it incurred in the same period last year.
Consolidated revenues fell 29 percent to P32.16 billion from P45.29 billion last year on the impact of the continuing COVID-19 pandemic that started in mid-March of 2020.
Passenger revenue amounted to P21.76 billion this year, lower from last year’s P35.55 billion while cargo revenue climbed 47 percent to P8.9 billion from P6.05 billion.
Consolidated operating expenses fell 36.7 percent to P42.75 billion from P67.52 billion on the significant reduction in the number of flights operated.
“Expenses related to grounded aircraft which were recognized this year under other charges as well as lower manpower costs as a result of PAL’s retrenchment program in mid-March of the current year also contributed to the decrease in operating expenses,” PAL Holdings said.
PAL Holdings earlier secured an approval from its board of directors to increase its authorized capital stock from 13.50 billion shares with a par value of P1 per share to 30 billion shares with a par value of P1 apiece.
any will issue 10.20 billion new common shares in exchange for the cash infusion of P12.75 billion from Buona Sorte Holdings Inc.
The P12.75 billion cash to be received by the company from BSHI will be down streamed to PAL pursuant to the court-supervised reorganization of the airline.
PAL, which filed Chapter 11 bankruptcy before the US Court, expects to exit from the proceeding by the end of the year.
The company said it was expecting to meet all financial obligations throughout the Chapter 11 process to employees, customers, the government, lessors, lenders, suppliers and other creditors.