Philippine Airlines reported a total comprehensive loss of P18.04 billion for the first half of the year, 18.1% lower than the P22.02 billion loss year-on-year
Revenues dropped 51% due to the COVID-19 pandemic
Revenues from passenger and ancillary services sank 60.3% and 74%, respectively
Cargo revenues grew 31.3%
Philippine Airlines (PAL) reported a total comprehensive loss of P18.04 billion for the first half of 2021, 18.1% less than the P22.02 billion loss year-on-year as expenses declined due to the significant reduction in the number of flights.
In a regulatory disclosure, PAL parent company PAL Holdings, Inc. said the effects of the COVID-19 pandemic slashed first-half consolidated revenues by 51% to P18.04 billion from P36.82 billion in the same period last year.
Restrictions in air travel depressed revenues from passengers by 60.3% to P11.621 billion from P29.26 billion.
Revenues from ancillary services also dropped 74% to P879.263 million from P3.338 billion.
A bright spot is cargo revenues, which grew 31.3% to P5.536 billion from P4.217 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.
Consolidated operating expenses decreased 48.6% to P26.83 billion in the first half of 2021 from P52.16 billion in the same period last year mainly due to significant reduction in the number of flights operated.
For 2021, PAL earlier 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; retrenched workers; and implemented cost-cutting measures in a bid to stage a business recovery.
PAL’s aircraft delivery schedule was revised to align with the forecasted recovery of travel demand, with 2020 and 2021 aircraft deliveries postponed and rescheduled for delivery in 2026-2030.In July 2021, two aircraft were returned to its lessor.
To complete the recovery, PAL management and stakeholders are working on the final stages of a comprehensive restructuring plan to 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. It noted that flights and operations will not be affected by any restructuring.
“We will increase our international and domestic flights as the market recovers witheasing of travel restrictions,” PAL added.