Philippine Airlines on Tuesday raised its capital stock by 130 percent as a part of a strategy to sustain profitability and keep a higher level of competitiveness.
The flag carrier controlled by tycoon Lucio Tan increased its authorized capital stock from P13 billion to P30 billion. The adjustment was approved by a majority of the company’s stockholders during a special meeting held at the Century Park Hotel.
The increase in capital stock will be filed with the Securities and Exchange Commission.
PAL’s parent firm PAL Holdings Inc. earlier reported a net loss of P7.86 billion in the first nine months of 2019, up 139 percent from a P3.29-billion loss in the same period in 2018.
Consolidated revenues in the January-to-September period amounted to P117.92 billion, up 5.6 percent from P111.62 billion in the same period in 2018.
PAL Holding’s consolidated operating expenses rose 2.2 percent to P117.13 billion from P114.67 billion in 2018.
“This was due to the increase in maintenance expense by 8.8 percent and aircraft and traffic servicing expenses by 2.7 percent driven by the growth in fleet, passenger and network operations. Reservation and sales likewise increased by 10.7 percent due to the growth in passenger volume,” the company said.
PAL flies to 43 international and 35 domestic destinations using 95 aircraft, one of the youngest fleets in the industry with an average age of just five years. Darwin G. Amojelar
ANA Holdings Inc., the Japanese parent company of All Nippon Airways, earlier invested $95 million for a 9.5-percent stake in PAL Holdings.
ANA HD acquired the shares from Trustmark Holdings Corp., which is owned by the Tan family.