By Arjay L. Balinbin, Senior Reporter

PAL Holdings, Inc., operator of flag-carrier Philippine Airlines, saw its net loss for the third quarter widen to P7.92 billion, as the global health crisis continues to ravage the air-travel sector.

The company incurred a net loss of P5.16 billion in the same period last year.

In a disclosure to the stock exchange, PAL Holdings reported a 76.9% drop in its total revenues for the third quarter to P8.47 billion.

The flag carrier operator saw its passenger revenues for the quarter go down by 80% to P6.30 billion. The company’s cargo revenues declined 23.5% to P1.84 billion, ancillary revenues dropped 87.5% to P338.25 million, and revenues from its other business segments decreased 52.1% to P2.05 million.

These brought the company’s nine-month total revenues to P45.29 billion, down 61.6% from last year’s P117.85 billion.

In the nine months through September, PAL Holdings’ net loss to parent equity holders hit P28.85 billion, or more than three times the P8.49 billion recorded a year ago.

Passenger revenues for the three quarters dropped 65.4% to P35.56 billion. Cargo revenues declined 12.2% to P6.05 billion. Ancillary revenues decreased 55.5% to P3.68 billion, while its other business segments generated P6.93 million, 76.9% lower than last year’s figure.

“The group’s performance was severely affected by the economic condition of the country due to COVID-19 (coronavirus disease 2019) pandemic,” PAL Holdings said.

The company said its total assets as of Sept. 30 this year went down 10.5% to P284.37 billion from P317.83 billion as of Dec. 31, 2019.

“The decrease was primarily brought about by the reduction in cash and cash equivalents and property and equipment offset by the effect of remeasurement to fair value of outstanding fuel deals and increase in receivables,” PAL Holdings said.

Its consolidated total liabilities decreased 1.4% or P4.43 billion from P312.93 billion as of Dec. 31, 2019 to P308.50 billion as of Sept. 30 this year.

“This was due to the decrease in total noncurrent liabilities by 10.2% or P21.49 billion partly offset by the increase in total current liabilities by 16.6% or P17.05 billion,” the company noted.

PAL Holdings’ consolidated total equity went down by P29.03 billion from P4.90 billion as of Dec. 31, 2019 to capital deficiency of P24.13 billion as of Sept. 30 this year.

The company attributed the decline to the “increase in deficit brought about by the total comprehensive loss for the nine months ended Sept. 30, 2020.”

“The disruption in the group’s operations due to the repercussions brought about by the COVID- 19 crisis had a negative impact on its equity position at the end of the period,” it added.