PAL Holdings, the majority owner of Philippine Airlines, reported a total comprehensive loss of P29.03 billion for the first nine months of 2020, 2.7 times the P7.86 billion loss incurred in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said its operations were severely affected by the worldwide travel restrictions due to coronavirus (COVID-19) outbreak.
Consolidated revenues for the first nine months of 2020 amounted to P45.29 billion, 61.6 percent lower than the P117.85 billion recognized in 2019.
The reduction in revenues was mainly due to the drop in passenger and ancillary revenues as a result of flight cancellations starting March 2020 due to COVID-19.
The company recognized other comprehensive loss of P451.36 million for the nine months of 2020
versus other comprehensive income of P91.19 million in the same period last year.
This was mainly brought about by the fair value adjustments of its quoted investments which substantially decreased during the current period, offset by the favorable effect of foreign exchange translation.
Philippine Airlines reported a comprehensive loss of $159.3 million for the third quarter of 2020, a 30 percent improvement compared to the $228 million loss in the second quarter, when Filipino airlines were grounded for an extended period due to the pandemic.
Total revenues for the third quarter reached $184.8 million, a 75 percent increase from the second quarter’s $105.8 million, while expenses rose by 16 percent.
The results reflected an increase in regular commercial flights as well as special cargo and repatriation services that helped boost PAL’s third quarter performance.
However, the 2020 losses are considerably higher than the $98 million loss sustained in the third quarter of 2019, confirming the severe impact of the unprecedented drop-off in passenger travel this year.
Worldwide travel restrictions continue to hold down travel demand, preventing airlines from restoring most of their pre-pandemic flights.
The flag carrier said it plans a calibrated ramp up of flights and routes in line with the easing of travel restrictions and gradual uptick in travel demand.
PAL’s daily flight frequencies now average about 17 percent of pre-covid frequency levels, marking a slow recovery in revenues and operations. The flag carrier served 339,000 passengers in the third
quarter of 2020, compared to only 92,000 in the second quarter.
“The airline’s shareholders continue to provide funding support, as PAL continues to undertake revenue generating and cost control measures as part of its business restructuring initiatives in the coming months,” PAL said.