PAL Holdings' losses widen to P11.8-B in 9 months
MANILA, Philippines – PAL Holdings Inc., the parent firm of national flag carrier Philippine Airlines Inc. (PAL), posted a net loss of P11.85 billion in the nine months ending December 31 of its fiscal year 2013.
The firm’s net loss in this period widened by 332 percent from the net loss of P2.74 billion in the same period of fiscal year 2012.
PAL, which is jointly owned by taipan Lucio Tan and diversified conglomerate San Miguel Corp., said it posted losses of P5.51 billion from operations in the first nine months consisting of P5.09 billion other charges as well as P1.31 billion financing charges.
“The other charges were primarily due to the impairment loss recognized for certain passenger aircraft that have been grounded or identified for retirement within 2014,” the airline said.
PAL’s total comprehensive loss swelled to P9.12 billion in the first nine months of Fiscal Year 2013 ending December 31 from the P2.74 billion loss booked in the same period of its Fiscal Year 2012.
Its total revenues, meanwhile, was steady at P55.97 billion in the first nine months of the Fiscal Year 2013 compared to P55.68 billion in the same period the previous fiscal year.
However, passenger traffic dropped to about 5 million from 7.6 million with passenger revenues down three percent to P45.4 billion from P46.8 billion.
Cargo revenues increased by 13.7 percent to P4.71 billion from P4.14 billion.
Total expenses jumped 5.2 percent to P61.5 billion from P58.43 billion as flying operating expenses increased by 6.7 percent to P36.4 billion from P34.1 billion.
In 2013, PAL operated new flights to Abu Dhabi, Brisbane, Dammam, Guangzhou, London, and Riyadh, but discontinued services to Delhi.
PAL currently operates 26 weekly flights to the US, with frequencies to Los Angeles, San Francisco , Honolulu and Guam.
PAL is looking to mount direct flights to New York, Chicago and other US cities following the Category 1 upgrade by the Federal Aviation Administration.