PAL's losses balloon further to P22 in 1H

PAL Holdings Inc. said Friday net loss ballooned in the first half of the year as operations were severely affected by the worldwide travel restrictions due to the coronavirus (COVID-19) outbreak.

The parent firm of PAL said total comprehensive loss amounted to P22.02 billion in the January-to-June period, up 631.6 percent from a loss of P3.01 billion in the same period last year.

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

Consolidated revenues for the first half amounted to P36.82 billion, down 54.7 percent from P81.20 billion year-on-year.

“The reduction in revenues was mainly due to 58.9-percent drop in passenger revenues as a result of flight cancellations starting March 2020 due to COVID-19,” the company said.

Consolidated operating expenses decreased 32.8 percent to P52.16 billion from P77.62 billion mainly due to a significant reduction in flights operated.

Other charges particularly financing charges decreased 18.6 percent to P5.11 billion from P6.28 billion due to payment of loans.

In April 2020, PAL's aircraft delivery schedule was revised to align with the forecasted recovery of travel demand. 2020 and 2021 aircraft deliveries were postponed and rescheduled for delivery

All PAL’s international and domestic flights to and from the hubs in Manila, Cebu, and Clark were cancelled until May 31, 2020 due to the quarantine restrictions on specific locations.

PAL resumed its limited operations in June 1, 2020, with restrictions remaining in place.

However, due to rising COVID-19 cases, Metro Manila and other nearby provinces were placed back to a modified enhanced community quarantine from August 4 to 18, 2020.

To comply with the government directives, all regular scheduled domestic flights to and from Manila from August 4 to 18, 2020 are cancelled.

Domestic flights between Clark, Cebu, Davao and cities other than Manila are not affected and will remain operational. International flights to and from Manila will continue to operate, subject to further guidelines from the authorities in line with quarantine capacity and related arrangements.

Topics: PAL Holdings Inc. , coronavirus outbreak , consolidated revenues
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