LOSSES of PAL Holdings, Inc. (PAL) ballooned in the third quarter, due to a decline in passenger and cargo revenues.

In a regulatory filing, the listed operator of Philippine Airlines (PAL) doubled its attributable net loss to P5.16 billion in the third quarter, from P2.52 billion during the same period last year.

For the July to September period, revenues were down 0.28% to P36.7 billion, “due to the decrease in passenger and cargo revenues offset by the increase in ancillary revenue.”

Broken down, passenger revenues slipped 0.43% to P31.5 billion. Cargo revenues declined by 11.05% to P2.4 billion, but this was offset by a 13.32% rise in ancillary revenues to P2.71 billion.

Expenses were flat at P39.51 billion, but other charges surged to P3.45 billion from P706 million a year ago.

“‘Other Charges’ in total showed a significant increase of P2.7 billion, primarily attributable to higher financing charges by P1.76 billion as a result of the Group’s adoption of PFRS (Philippine Financial Reporting Standards) 16, Leases in 2019 and higher other charges by P0.99 billion as there were significantly less credit memos received from aircraft manufacturers,” PAL Holdings said.

In the nine months ending September, PAL’s attributable net loss widened 116.2% to P8.5 billion from last year’s P3.92 billion, as expenses and financing charges increased.

Revenues rose 5.6% to P117.92 billion, primarily as passenger and ancillary revenues increased due to additional frequencies and new routes which contributed to the growth in passenger volume.

However, expenses also increased 2% to P117.138 billion. Financing charges as of end-September ballooned 142% to P9.45 billion from P3.8 billion a year ago, which the airline attributed to the adoption of PFRS 16, leases and additional aircraft financing.

The higher passenger and ancillary revenues helped offset the 8% drop in cargo revenues to P6.89 billion. Passenger revenues increased 5.76% to P102.7 billion, while ancillary revenues went up 18% to P8.25 billion. — Arjay L. Balinbin