Philippine Airlines’ (PAL) total comprehensive loss jumped to P10.72 billion for the first quarter of 2020 from P60.81 million in the same period last year, as operations were severely affected by worldwide travel restrictions due to the coronavirus disease (COVID-19) pandemic.
Consolidated revenues for the first quarter of 2020 amounted to P32.07 billion, 18.3% lower than the P39.24 billion recognized in 2019, parent company PAL Holdings, Inc. (PHI) said in a disclosure to the Philippine Stock Exchange.
The reduction in revenues was mainly due to the 21.4% drop in passenger revenues as a result of flight cancellations in March 2020 due to the COVID-19 outbreak. Passenger revenues for the first quarter of this year amounted to P27.014 billion, lower than the P34.374 billion earned in the same period last year.
Cargo revenues likewise dropped 14% to P1.893 billion from P2.204 billion in the previous year. Revenues from ancillary services, however, grew 19% to P3.163 billion from P2.666 billion.
Consolidated operating expenses increased to P38.63 billion, 5.2% higher than last year’s same quarter total of P36.71 billion, mainly due to increase in flying operations expenses, particularly fuel expenses as a result of hedging losses. This, however, was offset by the decline in other group’s operating expenses due to reduced flight operations during the quarter.
The company also recognized other comprehensive loss of P1.43 billion from P639.79 million last year, mainly brought about by the fair value adjustments of the company’s quoted investments which substantially decreased during the current quarter.
PAL president and chief operating officer Gilbert Santa Maria earlier said they expect a US$1 billion or around P50 billion loss from February until the lifting of quarantine restrictions.
READ: PAL seen losing revenues of $1B over quarantine period
The airline this month resumed some domestic and international flights following the easing of community quarantines nationwide. PAL said it will increase the number of routes and flights in the coming months, if allowed by aviation authorities, global public health conditions and the travel environment.
