Philippine Airlines narrowed losses in the first quarter of the year following a recovery in passenger revenues, driven by international traffic, in line with expectations previously released by management.
PAL Holdings Inc., the flag carrier’s listed parent, said in a stock exchange filing on Friday that its net loss decreased by almost 26 percent to P931.3 million.
PAL Holdings, jointly owned by San Miguel Corp. and the family of taipan Lucio Tan, noted that revenues were up 18.2 percent to P21.65 billion. Bulk of these came from passenger revenues, which rose 19 percent to P17.89 billion. Philippine Airlines added new international routes last year like London and various flights to the Middle East.
“The increase was attributable mainly to the favorable passenger revenue performance during the quarter as a result of the 40.1 percent increase in passenger traffic mainly in international routes,” PAL Holdings said.
Total operating expenses increased by 16.6 percent P22.45 billion.
Higher expenses related to flying operations, aircraft and traffic servicing, passenger service and reservation and sales contributed to the increase in expenses, it said.
Philippine Airlines and SMC president Ramon Ang earlier indicated that the flag carrier would turn around this year and potentially post a profit. Philippine Airlines was weighed down last year by a costly writedown from retiring old planes and as passenger revenues dipped.