PAL Holdings, operator of flag carrier Philippine Airlines (PAL), has reduced its losses by 86% in the first third quarters of its current fiscal year mainly due to cost-cutting measures.
The carrier said it posted a comprehensive loss of P1.967 billion compared to the P13.841-billion loss in the same period last year.
Consolidated net loss from operations showed a significant decrease of 94% from P14.307 billion as of December 31, 2008 to P911.4 million for the current period.
Consolidated revenues amounted to P51.213 billion, 11% lower than the P57.640 billion registered a year earlier due to lower passenger revenues offset in part by other income earned during the period.
The 23% decline in passenger revenues was attributed to lower net yield per revenue passenger kilometer and the continued decline in passenger demand from international operations, which comprise 72% of total revenues.
Consolidated expenses for the first three quarters decreased by P19.657 billion or 27% from the P71.781 billion posted in the same period last year mainly due to lower expenses related to flying operations, down 40%; reservation and sales (-9%); financing charges (-25%); general and administrative expenses (-12%); and other expenses (73%).
PAL said the lower expense for flying operations resulted from less fuel costs which dipped 52% for the period in review. At that time, the average price per barrel of aviation fuel dropped to $84.07 in 2009 from $181.9 in 2008.
