MANILA, Philippines - PAL Holdings, Inc., owner of Philippine Airlines (PAL), trimmed losses to P2 billion in the nine-month period ending December 2009 from P13 billion the previous year due to drastically lower expenses as well as revenue gains by some subsidiaries.

Consolidated revenues stood at P51.2 million, 11% lower than the P57.6 million recorded in the same period in 2008.

“The decrease was brought about by the drop in passenger revenues offset in part by other income earned during the period. The decline in passenger revenues by 23% was primarily brought about by the continued decline [of] international operations that affected [major subsidiary] PAL’s revenue generation,” the company said in a statement.

Losses were also offset by the debt buyback of PAL and the decrease in PAL Holdings’ consolidated expenses by 27% to P52.1 billion, from P72 billion in 2008.

Passenger revenues of PAL fell to P38.3 billion in the nine-month period from April to December 2009 from P58 billion in 2008.

The company’s fiscal year runs from April to March of the following year.

PAL Holdings said expenses on “flying operations, reservation and sales, financing charges, general administrative expenses and other expenses” were down drastically due to cost-cutting measures.

PAL Holdings own majority of PAL and PR Holdings, and indirectly, Abacus Distribution Systems Philippines, Inc., Pacific Aircraft Ltd., Peal Aircraft Ltd., Peerless Aircraft Ltd. and Synergy Services Corp.

Shares in PAL Holdings closed at P2.70 apiece in yesterday’s trading, a 25% drop from its close of P3.60 apiece last Feb. 19. -- E. N. J. David