PAL Holdings Inc., the operator of Philippine Airlines, said over the weekend comprehensive loss skyrocketed in the first nine months amid the worldwide travel restrictions brought about by the coronavirus outbreak.
PHI said comprehensive loss reached P29.03 billion from January to September, up by 269 percent from the P7.86-billion loss it booked in the same period last year.
It said third-quarter loss amounted to P7 billion, also up from the P4.85-billion loss in the same period last year.
Consolidated revenues fell 61.6 percent in the first nine months to P45.29 billion from P117.85 billion recognized in 2019.
“The reduction in revenues was mainly due to the drop in passenger and ancillary revenues as a result of flight cancellations starting March 2020 due to COVID-19,” PHI said.
PAL said in a separate statement that worldwide travel restrictions continued to hold down travel demand, preventing airlines from restoring most of their pre-pandemic flights.
“The flag carrier plans a calibrated ramp-up of flights and routes in line with the easing of travel restrictions and gradual uptick in travel demand,” it said.
PAL’s daily flight frequencies average about 17 percent of pre-COVID frequency levels, marking a slow recovery in revenues and operations.
The flag carrier served 339,000 passengers in the third quarter, compared to only 92,000 in the second quarter.
“The airline’s shareholders continue to provide funding support, as PAL continues to undertake revenue generating and cost control measures as part of its business restructuring initiatives in the coming months,” PAL said.
PHI’s consolidated operating expenses decreased 42.4 percent to P67.52 billion from P117.14 billion a year earlier on significant reduction in flights operated.
Other charges decreased by 36.2 percent to P6.24 billion from P9.78 billion, on lower financing charges incurred on loans and recognized gain on sale of investment property in 2020.