PAL losses soar to P22 billion

MANILA, Philippines — Losses of Philippine Airlines (PAL) widened in the first half as the operations were severely affected by the worldwide travel restrictions due to the COVID-19 outbreak.

PAL Holdings Inc. said total comprehensive loss for the first semester ballooned to P22.02 billion from last year’s P3 billion.

Revenues fell by 54.7 percent to P36.82 billion due to the 58.9 percent drop in passenger revenues as a result of flight cancellations starting March due to COVID-19.

PAL’s operating expenses, however, declined 32.8 percent to P52.16 billion on the back of significant reduction in flights operated.

“The group’s performance was severely affected by the economic condition of the country due to COVID-19 pandemic,” PAL said.

PAL suspended all domestic and international flights last March 17 and 26, respectively.

All its international and domestic flights to and from hubs in Manila, Cebu, and Clark were cancelled until May 31. It was only able to resume limited operations on June 1.

Last April, PAL revised its aircraft delivery schedule to align with the forecasted recovery of travel demand.

PAL said 2020 and 2021 aircraft deliveries were postponed and rescheduled for delivery in 2022 to 2025.

Together with the other members of the Air Carriers Association of the Philippines, PAL has been appealing for government support to sustainably operate given the catastrophic impact of the COVID-19 on the aviation industry.