PAL Holdings Inc. said net loss rose ballooned in the first half of the year as operation were severely affected by the worldwide travel restrictions due to coronavirus (COVID-19) outbreak.
The parent firm of PAL said total comprehensive loss amounted to P22.02 billion in the January to June period, up by 631.56 percent from P3.01 billion losses in the same period last year.
“The Group’s performance was severely affected by the economic condition of the country due to COVID-19 pandemic,” PAL Holdings said.
Consolidated revenues for the first half amounted to P36.82 billion, 54.7 percent lower than the P81.20 billion recognized in 2019.
“The reduction in revenues was mainly due to 58.9 percent drop in passenger revenues as a result of flight cancellations starting March 2020 due to COVID-19,” the company said.
Consolidated operating expenses decreased by 32.8 percent to P52.16 billion, from P77.62 billion mainly due to significant reduction in flights operated.
Other charges particularly financing charges decreased by 18.6 percent to P5.11 billion from P6.28 billion due to payment of loans.
In April 2020, PAL’s aircraft delivery schedule was revised to align with the forecasted recovery of travel demand. 2020 and 2021 aircraft deliveries were postponed and rescheduled for delivery
All PAL’s international and domestic flights to and from our hubs in Manila, Cebu, and Clark were cancelled until May 31, 2020 due to the quarantine restrictions for specific locations.
PAL has resumed its limited operations on June 1, 2020, with restrictions remaining in place.
However, due to rising COVID-19 cases, Metro Manila and other nearby provinces have placed back to a Modified Enhanced Community Quarantine (MECQ) from August 4 to 18, 2020.
To comply with the government directives, all regular scheduled domestic flights to and from Manila from August 4 to 18, 2020 are cancelled.
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.