LISTED PAL Holdings Inc., parent company of the country’s flag carrier Philippine Airlines, Inc., swung to a net loss in the first three months of 2017 from a net profit in the same period last year due to the impact of higher fuel costs and aircraft lease charges, among others.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, PAL Holdings said it incurred a net loss of P1.15 billion for the first quarter of this year, reversing the net income of P2.98 billion posted in the same quarter last year.
Revenue for the first three months rose 14.4 percent to P33.3 billion from the previous year’s P29.1 billion, “primarily due to the increase in the number of passengers as a result of additional flight frequencies and the introduction of new routes.”
It said expenses rose 32.4 percent to P34.3 billion from the previous year’s P25.9 billion due to the higher costs of flying operations, maintenance, aircraft and traffic servicing, reservation and sales, passenger service and general and administrative expenses.
The cost of flying operations rose as a consequence of higher fuel costs and aircraft lease charges, it said, adding that the increase in flights also resulted in higher fuel consumption.
“The addition of two Boeing 777-300ER in October and December 2016 to PAL’s fleet resulted in higher lease charges,” the company said.
PAL Holdings said the increase in reservation and sales expenses was primarily driven by higher booking fees and credit card fees due to the growth in passenger sales.