Philippine Airlines Losses Balloon to Over P20 Billion in 1H 2020
PAL Holdings Inc., the parent company of the nation’s flag carrier Philippine Airlines, reported a comprehensive loss of P22.02 billion in the first six months of 2020. That’s P19.01 billion higher than the P3.01 billion loss it reported in the same period last year.
As with many other businesses, PAL Holdings said it was severely affected by worldwide travel restrictions as a consequence of the coronavirus pandemic. Domestic and international air travel were suspended since March 2020 until May 31. Limited flights resumed on June 1 but were again suspended when the government again imposed modified enhanced community quarantine (MECQ) from August 4 to 18.
“To comply with the government directives, all regular scheduled domestic flights to and from Manila from August 4 to 18, 2020 are cancelled,” PAL said. “Domestic flights between Clark, Cebu, Davao and cities other than Manila are not affected and shall remain operational. International flights to and from Manila shall continue to operate, subject to further guidelines from the authorities in line with quarantine capacity and related arrangements.”
The losses wiped out the P17.68 billion cash its chairman, president and CEO Lucio Tan infused to help the ailing company since last year.
Other financial figures it reported to the Philippine Stock Exchange were also grim.
Consolidated operating expenses tanked 32.8 percent to P52.16 billion from last year’s P77.62 billion which was due mainly to significant reduction in flights operated.
The company said its 2020 and 2021 aircraft deliveries has been postponed and rescheduled from 2022 to 2025.