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Philippine Airlines reported a loss of P27.19 billion for the first nine months of 2021, lower than the P29.03 billion loss posted year-on-year
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Revenues declined 29% as both passenger and ancillary revenues dropped 38.8% and 60%, respectively
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Cargo revenues grew 47% while operating expenses declined 36.7%
Philippine Airlines (PAL) reported a loss of P27.19 billion for the first nine months of 2021, lower than the P29.03 billion loss posted in the same period last year.
Consolidated revenues for January to September 2021 declined 29% to P32.162 billion from P45.29 billion last year due to the continuing effects of the COVID-19 pandemic, the flag carrier said in a regulatory disclosure.
Passenger revenues dropped 38.8% to P21.766 billion from P35.556 billion, while ancillary revenues went down 60% to P1.479 billion from P3.676 billion.
Cargo revenues, on the other hand, increased 47% to P8.906 billion from P6.054 billion last year.
Operating expenses decreased 36.7% to P42.75 billion from P67.52 billion, mainly due to the significant reduction in the number of flights operated. Expenses related to grounded aircraft, recognized this year under other charges, as well as lower manpower costs as a result of the retrenchment program in mid-March also contributed to the decrease in operating expenses.
PAL on September 3 filed for bankruptcy with the US Bankruptcy Court in New York to implement a restructuring plan.
READ: PAL files for bankruptcy in US
On October 1, the US court approved on a final basis PAL’s access to its debtor-in-possession financing totaling $505 million.
Buona Sorte Holdings, Inc. will be infusing the $505 million as working capital into PAL to support its reorganization plan. Both firms are under the Lucio Tan Group.
READ: Lucio Tan’s firm sinks $505M in PAL’s reorganization
The cash infusion and loans of other unsecured creditors will be used to support PAL’s application for capital increase via debt-to-equity conversion, which is targeted to be filed in the latter part of the year.
