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Friday, March 29, 2024

PAL Holdings swung to P56-b profit last year

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PAL Holdings Inc. said Wednesday it posted a comprehensive income of P56.49 billion in 2021, a turnaround from the comprehensive loss of P73 billion in 2020.

The parent firm of Philippine Airlines said consolidated revenues amounted to P58.70 billion last year, or 6.2 percent higher than P55.26 billion in 2020.

“The significant increase in revenues was mainly due to the increase in cargo revenues as air cargo has been a vital partner in delivering essential goods since the COVID-19 pandemic,” PAL Holdings said.

PAL Holding’s consolidated operating expenses were reduced by 23.3 percent from P81.84 billion in 2020 to P62.80 billion in 2021 mainly due to expenses related to grounded aircraft.

Flying operations expenses fell P15.14 billion or 31.3 percent to last year’s P48.43 billion because of lower fleet costs such as depreciation expenses and lease charges related to grounded aircraft.

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Aircraft and traffic servicing expenses also decreased to P6.11 billion or 14.8 percent from P7.18 billion in 2020 mainly due to lower ground handling and landing and take-off charges.

Passenger service expenses dropped 21.3 percent from P5.08 billion to P4 billion on fewer passengers that resulted in lower passenger food and inflight.

“Due to the COVID-19 contagion which has had a catastrophic impact on the world economy, most specially in the airline industry, PAL sales/revenues/income have decreased significantly due to cancelled flights and restrictions imposed by the different destinations that PAL has operations. This has a huge impact on the airline,” PAL Holdings said.

PAL committed to streamline its business and return over 20 aircraft as part of its restructuring plan that was approved by US Court on Dec. 31, 2021.

It said that as of end-2021, the remaining aircraft for delivery in the future included 13 Airbus 321-231 NEO aircraft to be delivered between 2026 and 2029.

PAL and Airbus agreed for further deferral of the deliveries from the original scheduled delivery between 2022 and 2025.

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