PAL Holdings Inc. reported a 38-percent drop in net losses last year on higher passenger and cargo revenues.
The parent firm of Philippine Airlines posted a comprehensive net loss of P2.8 billion last year from P4.6 billion in losses in 2017.
The airline’s consolidated revenues rose 16 percent to P150.4 billion from the previous year’s P129.5 billion.
Passenger revenues, which contributed the biggest share of 85.4 percent of the total revenues, reached P128.41 billion last year from P110.63 billion in 2017.
PAL Holdings attributed the growth in revenues to the increase in the volume of passengers carried and number of flights operated.
PAL operated 112,072 flights and carried 15.9 million passengers in 2018 from 103,362 flights and 14.5 million passengers in 2017.
Cargo revenues increased 21.7 percent to P10.21 billion last year from P8.39 billion in 2017 due to volume and improvement in yields.
Ancillary revenues also increased by 14.8 percent to P11.56 billion last year from P8.39 billion in 2017 as a result of the growth in volume of passengers.
PAL Holding’s consolidated expenses increased 17.8 percent to P155.7 billion last year from P132.2 billion in 2017.
“The increase in expenses was attributable to higher-flying operations, aircraft and traffic servicing, maintenance and reservation and sales expenses,” the company said.
PAL Holdings added the increase in flying operations expenses was attributable to fuel costs and lease charges.
Fuel consumption reached P52.3 billion lat year from P38.4 billion in 2017.
PAL Holdings attributed the increase mainly due to the escalation in jet fuel prices from an average of $75.59 per barrel in 2017 to $94.38 per barrel in 2018.