PAL swings to loss as it grapples with higher costs
Philippine Airlines incurred a a net loss of P3.5 billion in the first nine months, weighed down by soaring fuel prices.
This was a reversal of the P2.96 billion profit recorded in the same period last year.
In the third quarter, PAL swang to a net loss of P2.49 billion, 49.9 percent higher than the previous year’s P1.66 billion loss.
Nine-month revenues grew 15.6 percent to P98.6 billion. Passenger revenues increased 14.6 percent to P81.96 billion while cargo revenues grew 23 percent to P6.09 billion fr
PAL attributed the growth in revenues to increased passenger and cargo traffic due to additional flight frequencies and the introduction of new routes.
Total expenses rose 27.3 percent to P103.82 billion owing to higher flying operations, maintenance, aircraft and traffic servicing.
The escalation in average jet fuel price per barrel from $ 65.9 in 2016 to $73.92 in 2017 and the additional flights operated during the period jacked up fuel costs by 50.4 percent.
Deliveries of two A321 and two Boeing 777- 300ER in October, November and December last year also resulted in additional lease charges to P1.44 billion.