PAL Holdings, Inc. saw its third-quarter attributable net income drop to P789.79 million from P4.28 billion in the same period last year due to lower passenger revenue.
In a stock exchange disclosure on Tuesday, PAL Holdings, the listed operator of Philippine Airlines, said it generated a revenue of P41.53 billion, 11.9% lower than the P47.13 billion combined revenues in the same period last year.
“The latest net income report reflects our ongoing focus on investments to ensure higher-level products and services for our customers – building up our fleet, upgrading our cabins, rolling out digital innovations, and refining a high-performance culture for our teams,” PAL President and Chief Operating Officer Stanley K. Ng said.
Broken down, passenger revenue fell to P35.82 billion for the third quarter, 14.4% lower than last year’s P41.84 billion.
Cargo revenues also dropped by 28.9% to P2.45 billion from P3.45 billion previously, while revenues from ancillary services also went down to P3.35 billion, 1.2% lower than the P3.39 billion in the comparable period a year ago.
“As market conditions normalize, we are continuing to see a moderation in growth and a more challenging business environment where rising costs exert greater pressure on the economics of airline operations,” Mr. Ng said.
For the nine months to September, PAL Holdings’ attributable net income went down by 55.4% to P6.76 billion from P15.16 billion in the same period last year.
For the January to September period, PAL Holdings’ gross revenue plunged to P132.45 billion, lower by 1.6% from P134.58 billion, the company’s financial statement showed.
Broken down, passenger revenue dropped by 3.9% to P115.66 billion from P120.08 billion, while cargo revenues went down to P6.47 billion, marking a decrease of 13.3% from P7.47 billion. Ancillary revenues, meanwhile, increased by 17% to P10.24 billion from P8.75 billion previously.
Gross expense for the nine-month period climbed to P120.09 billion, increasing by 9.5% from P109.70 billion in the same period last year.
For the nine months to September, Philippine Airlines carried 11.7 million passengers, the company said.
Its year-to-date capital expenditures increased to $263 million or P15 billion, which includes pre-delivery payments for the company’s aircraft order and maintenance requirements of its aircraft and engines and enhancements.
At the local bourse on Tuesday, shares in the company closed six centavos, or 1.13% lower, at P5.24 apiece. — Ashley Erika O. Jose
