PAL reports P9 billion comprehensive loss in Q1 - Aviation Updates Philippines | Latest Philippine aviation news

Post Top Ad

PAL reports P9 billion comprehensive loss in Q1

Share This
Aviation Updates Philippines – On Thursday, national flag carrier Philippine Airlines confirmed it incurred a comprehensive loss of $183.1 million for the first quarter of this year, ending March 31, 2020. The losses can be attributed to the severe impact of the COVID-19 pandemic.


Based on PAL’s media statement on its Annual Stockholders Meeting (ASM), the airline reported a “healthy” P1.8 billion net income ($37 million) for January 2020. It is a positive reversal of a loss of P726 million ($14.7 million) registered in 2019 alone.


However, the carrier experienced a significant downturn in sales and demand due to the pandemic. International and domestic air travel slumped beginning February and March, respectively, as countries shut borders to control the virus.


PAL ceased all domestic and some international flights from mid-March until early-June as the National Capital Region was placed under the Enhanced Community Quarantine (ECQ). The cessation of air services led to the hemorrhaging losses airlines still experience to date.


“To address the impact of the flight shutdown that persisted into April and May, PAL’s shareholders have infused new capital and endorsed an aggressive strategy to generate revenues and control costs, as the flag carrier gears up for the “new normal” in air transportation,” it said.


In May, Philippine Airlines President and Chief Operating Officer Gilbert Santa Maria, in an interview with ANC, said business magnate Lucio Tan poured in P15.2 billion to keep the national flag carrier afloat. The chief admitted, without the liquidity, PAL “would probably be not here anymore.”


The flag carrier has experienced significant losses over the years. The company filed losses of P4.61 billion in 2017, P2.84 billion in 2018, and almost quadrupling to P10.2 billion for last year.


READ: PAL kept afloat after Lucio Tan’s P15 billion infusion


Since March, PAL continued to perform its duty as the national flag carrier as it operated 640 domestic and international cargo flights. As it remains to rebuild its route network slowly, the airline plans to fly 122 weekly flights by August.


Photo from Philippine Airlines

No comments:

Post a Comment

Please be informed that the comments posted below do not necessarily reflect the views of the blog, Aviation Updates Philippines, its authors, contributors, and the community. Although we have the right to fully exercise the freedom of expression at some extent, we have to use it wisely. Observing proper netiquette is a must.

Post Bottom Ad