PAL Holdings trimmed losses in Q1 on contained expenses, higher revenues

The listed operator of Philippine Airlines (PAL) saw smaller losses in the first quarter of the year as it contained costs while revenues flew higher.

PAL Holdings Inc., controlled by taipan Lucio Tan, said in a stock exchange filing that losses from January to March this year hit P838.2 million, a 25-percent improvement over its P1.1-billion loss in the same period in 2018.

Ticket sales got a boost as PAL launched new routes and added capacity with the delivery of new aircraft this year.

Total revenues during the first quarter hit P39.27 billion, up 7.2 percent. Of that figure, passenger revenues alone accounted for P34.24 billion, up almost 7 percent. Cargo revenues slipped lower by 2.3 percent while ancillary revenues rose almost 22 percent.

A big factor in PAL Holdings’ smaller loss was the lower price of fuel, a major operating expense.

PAL Holding said flying operations expenses dropped by 3.4 percent to P19.15 billion during the first quarter mainly as fuel costs dropped by 10.2 percent.

Overall expenses went up 0.2 percent to P36.81 billion but this was mainly due to PAL ramping up operations, given its larger route network and larger fleet.

PAL ended the first quarter with 97 planes, unchanged from the same period in 2018. During this period, it took delivery of its fifth Airbus A350-900 while it phases out an older A340-300. It has one remaining A340-300.

The rest of its fleet is comprised of Boeing 777-300ERs, A330-300s, A321s, A321Neo, A320s, and Bombardier Q400s.

PAL president Jaime Bautista earlier said the company was expecting better prospects in 2019 and that PAL was targeting to return to profitability this year.

That plan was bolstered by the entry of Japan’s ANA Holdings, operator of that country’s largest airline, All Nippon Airways. Last February, ANA Holdings acquired a 9.5-percent stake in PAL Holdings for about $95 million.

Tan’s family, through privately held Trustmark Holdings Corp., continues to hold 76.92 percent of PAL Holdings. —MIGUEL R. CAMUS