Philippine Airlines (PAL) reported a comprehensive loss of P3.29 billion for the first nine months of the year, 42.2% higher than the P2.31 billion posted in the same period last year due to elevated operating costs.
Total revenues for January to September 2018 amounted to P112.07 billion, 16% more than last year’s P96.58 billion. The rise was brought about mainly by higher passenger and cargo revenues due to increased number of passengers handled and flights operated.
Passenger revenues rose 16.6% to P96.601 billion from P82.853 billion, while cargo revenues went up 22.8% to P7.487 billion from P6.099 billion.
Revenues from ancillary services also improved 5% to P7.792 billion from P7.424 billion previously.
Total expenses, however, grew to P115.30 billion, 17% more than the previous year’s total of P98.56 billion, primarily due to hikes in jet fuel prices, aircraft lease charges, and flight frequencies. The cost increase was partly offset by lower maintenance and repairs expenses.
Flying operations expenses rose by 26.9% from P49.84 billion in the same period last year, mainly due to higher fuel costs and lease charges. From January to September 2018, jet fuel expenses jumped 36.1% as a result of higher average price per barrel of aviation fuel from US$73.92 in 2017 to $92.80 in 2018. Lease charges also grew P0.33 billion or 11.3% due to additional deliveries of eight aircraft.
PAL this year is further boosting its operations at its hubs in Davao, Cebu, and Clark with the scheduled arrival of 15 new aircraft in 2018, and another six aircraft in 2019.
With a current fleet of more than 80 aircraft, the four-star airline plans to boost this to 100 aircraft by 2020 and to continue fleet build-up until 2024 as it aims to become a carrier with a five-star rating.
