Philippine Airlines said it posted a net loss in the first nine months on costlier jet fuel prices this year.
The airline, controlled by tycoon Lucio Tan, said it recorded a comprehensive loss of P3.5 billion in January to September, a turnaround from the P2.96-billion total comprehensive income it declared in the same period last year.
PAL said it posted a comprehensive loss of P2.49 billion in the third quarter, or 49.9 percent higher than last year’s P1.66-billion loss.
Revenues in the first nine months rose 15.6 percent to P98.63 billion from P85.35 billion a year earlier.
Passenger revenues grew to P81.96 billion from last year’s P71.47 billion, while cargo revenues increased to P6.09 billion from P4.94 billion.
Revenues in the third quarter amounted to P3.09 billion, up by 11.1 percent from last year’s P27.78 billion.
“The increase was attributable to the growth in passenger and cargo traffic as well as ancillary revenues, resulting from additional flight frequencies and introduction of new routes,” PAL said.
Total expenses climbed 27.3 percent to P103.82 billion from P81.55 billion on increase in flight frequencies and introduction of new routes.
“The increase in expenses is attributable mainly to higher flying operations, maintenance, aircraft and traffic servicing, passenger service, reservation and sales and general and administrative,” PAL said.
Flying operations expenses went up 32.5 percent to P56.80 billion because of higher fuel costs.
The escalation in average jet fuel price per barrel from $65.90 in 2016 to $73.92 in 2017 and the additional flights operated during the period, resulted in a 50.4-percent increase in fuel costs over last year.
Deliveries of two A321 and two Boeing 777- 300ER in October, November and December 2016 also resulted in additional lease charges to P1.44 billion.