PAL reported losses of P29.03 billion in the first nine months of 2020, nearly three times the P7.86 billion red ink it spewed during the same period last year.
PAL has swung to a negative capital of P24.13 billion as of September 2020 from P4.9 billion surplus in December 2019.
With mounting debt and shrinking cash, PAL has already deferred the delivery of its new aircraft from 2020 -2021 to 2022-2025 “to align with the forecasted recovery of travel demand.”
PAL blamed its massive losses to the “economic condition of the country due to COVID-19 pandemic.”
It cited the series of lockdowns from mid-March to mid-August for the drop in passenger and other revenues tp P45.29 billion, down 61 percent from the first nine months of 2019.
But PAL’s troubles have been mounting long before the coronavirus killed the airline industry.
PAL has piled up P20.4 billion in the last three years – P7.3 billion in 2017, P2.8 billion in 2018, and P10.3 billion in 2019.
Since Tan regained control of the flag carrier in from bilyonaryo Ramon S. Ang in 2014, PAL has only posted positive performances in two years – P5.87 billion in 2015 and P3.945 billion in 2016.