PAL Holdings Inc. reported that its flag carrier and budget airline Air Philippines Corp. posted a mind-boggling P22.02 billion loss in the first six months of 2020, or P19 billion more than the P3.01 billion it shed in the same period last year.
PAL’s losses in the first six months have more than eclipsed the P17.68 billion in cash injections from Tan since 2019.
Total revenues cratered by more than half to P36.82 billion in the first half of 2020, form P81.2 billion during the same period last year.
“The reduction in revenues was mainly due to 58.9% drop in passenger revenues as a result of flight cancellations starting March 2020 due to COVID-19…the Group’s operations were severely affected by the worldwide travel restrictions due to coronavirus outbreak,” said PAL.
All domestic and international flights were canceled in mid-March due to the quarantine restrictions for specific locations.
After PAL resumed limited operations on June 1, it canceled flights anew from August 4 to 18 due to the return of the lockdown in Metro Manila and other urban areas in the country.
With cash getting scarce (down 81 per cent to P1.725 billion), PAL’s debt-to-equity ratio exploded by more than eight-fold to 388.58 percent as of June 30, 2020 compared to 46.54 as of December 31, 2019.
PAL said P95.164 billion in liabilities are due in 2020 or 32 percent out of its total obligations of P289 billion.