Philippine Airlines posted a total comprehensive loss of P9.60 billion for the first quarter of 2021, 10.5% lower year-on-year
Consolidated revenues were 74.1% less due to the COVID-19 pandemic
Revenues from passengers and ancillary services dropped 80.3% and 84.4%, respectively
A bright spot is cargo revenues, which jumped 31%
PAL is working on the final stages of a comprehensive restructuring plan
Philippine Airlines (PAL) reported a total comprehensive loss of P9.60 billion for the first quarter of 2021, 10.5% lower than the total comprehensive loss of P10.72 billion in the same period last year.
Consolidated revenues for the first three months of 2021 amounted to P8.30 billion, 74.1% less than the P32.07 billion recognized in 2020 due to the effect of the continuing COVID-19 pandemic, the global health crisis that started in mid-March of 2020, PAL parent firm PAL Holdings, Inc. said in a regulatory disclosure.
With air travel still behind pre-pandemic levels, passenger revenues dived 80.3% to P5.319 billion in the first quarter of 2021 from P27.014 billion in the same quarter last year.
Revenues from ancillary services also dropped 84.4% to P494.941 million from P3.163 billion previously.
Cargo revenues, on the other hand, recorded a 31% increase to P2.484 billion from P1.893 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 for the first quarter of the year decreased to P13.25 billion, 65.7% lower than the P38.63 billion spent in the same period last year, the decrease mainly due to the 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; carried out a retrenchment program; and implemented cost-cutting measures.
PAL’s aircraft delivery schedule was also revised to align with the forecasted recovery of travel demand. Aircraft deliveries for 2020 and 2021 were postponed and rescheduled for delivery in 2022-2025.
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. 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.