PAL Holdings posts bigger loss on higher fuel cost
The operator of flag carrier Philippine Airlines saw deeper losses in the first quarter of 2018 as it expanded operations amid higher oil prices.
PAL Holdings Inc. said in a stock exchange filing that its net loss during the three-month period hit P1.1 billion as against a loss of P954.34 million last year.
This came despite overall better demand. Total revenues hit P36.79 billion, up almost 13 percent. Passenger revenues alone amounted to P32.04 billion, up 14 percent. PAL Holdings, however, recorded a decline in cargo revenues at P2.43 billion, down 9.6 percent.
PAL ramped up operations last year, pushing up total expenses to P36.9 billion, higher by almost 14 percent.
But it noted that the higher price of jet fuel, its biggest operating expense, cut into earnings. Jet fuel registered an increase of P2.1 billion during the period, PAL Holdings said. Overall flying operations went up by 18.4 percent to P3.08 billion, partly as the airline leased two more Boeing 777-300ERs last December.
PAL said in a separate statement that it would continue to expand in 2018. It will take delivery of the first of 21 Airbus A321neos by the end of this month. It said these would be deployed in its Australia and Asia routes.
By mid-July, it will take delivery of the first of six Airbus A350-900s. These will be deployed in North America and Europe.
“These new planes form part of our company’s road map toward providing ultimate passenger comfort and delight and being at par with global airlines in terms of service standards while maintaining our distinct PAL brand of heartfelt service,” PAL president Jaime Bautista said in the statement.
The fleet modernization is part of PAL’s goal to become a five-star carrier by 2020. It recently bagged four-star status following an audit by Skytrax.
