Philippine Airlines’ total comprehensive loss of P73 billion in 2020 was 616% higher than last year’s P10.20 billion loss, owing to COVID-19 crisis-induced worldwide travel restrictions
Consolidated revenues for 2020 were 64.2% lower than in 2019
Only cargo revenues recorded a minimal 0.4% increase in 2020
PAL is finalizing a comprehensive restructuring plan that will help it emerge stronger from the global crisis
Philippine Airlines (PAL) reported a total comprehensive loss of P73 billion 2020, which is 616% higher from last year’s P10.20 billion total comprehensive loss, as its operations were hurt by worldwide travel restrictions due to COVID-19 pandemic.
Consolidated revenues for 2020 amounted to P55.26 billion, 64.2% lower than the P154.54 billion recognized in 2019.
In a regulatory disclosure, parent firm PAL Holdings, Inc. said the significant decline in revenues was mainly due to the drop in passenger and ancillary revenues as a result of flight cancellations starting March 2020 due to the COVID-19 pandemic.
In a separate statement, PAL said the global airline industry incurred record losses of over P6.1 trillion amid a 65.9% decline in airline passenger traffic, the sharpest drop in history, according to the International Air Transport Association.
Locally, the Philippine government halted all commercial flights partly in March 2020 and throughout April and May as part of a nationwide community quarantine, while local and worldwide travel restrictions held airlines down to a limited number of flights for the rest of 2020.
PAL’s consolidated operating expenses were reduced by 46% to P81.84 billion from P151.66 billion in 2019, mostly driven by the group’s limited operations.
Passenger revenues dropped 69% to P41.860 billion last year from P134.292 billion in 2019. Ancillary revenues likewise declined 62.8% to P3.98 billion from P10.699 billion.
Cargo revenues, on the other hand, recorded a minimal growth of 0.4% to P9.413 billion from P9.375 billion. Earlier, PAL senior vice president and chief strategy and planning officer Dexter Lee said the airline will continue to expand its cargo business, which has become a lifeline for the flag carrier during the COVID-19 pandemic.
For 2021, PAL said it has increased its regular flights on most of its pre-pandemic routes, while also undertaking new all-cargo services and special repatriation flights on multiple routes to North America, the Middle East, Asia and throughout the Philippines.
The flag carrier has drawn on bridge funding and support from its majority shareholder; deferred payments to lessors, lenders and suppliers; carried out a retrenchment program; and implemented cost-cutting measures.
To complete its recovery, PAL management and stakeholders are working on the final stages of a comprehensive restructuring plan that will enable the airline to emerge financially stronger from the current global crisis.
PAL said its management will make the necessary disclosures once details of the restructuring plan are finalized.
“We are confident that the restructuring will enable PAL to strengthen its capital structure, meet stakeholder obligations and position the company for long-term success,” the airline said.
It noted that its flights and operations will not be affected by any restructuring.
“We will increase our international and domestic flights as the market recovers with easing of travel restrictions,” PAL added.