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PAL posts bigger losses, receives equity deposits

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REUTERS

The listed operator of flag carrier Philippine Airlines reported incurring more losses in the second quarter as the pandemic continues to cause worldwide travel restrictions.

PAL Holdings, Inc. posted a net loss of P11.55 billion during the three-month period, wider than its loss of P2.49 billion last year.

The group also said in a disclosure to the stock exchange on Friday that it received additional deposits for future stock subscription from Buona Sorte Holdings, Inc. amounting to P6.27 billion.

“As of June 30, 2020, the total deposits of P17.68 billion were presented as non controlling interests in the consolidated equity of PAL Holdings as PAL’s application for the increase in authorized capital stock has been filed with the SEC (Securities and Exchange Commission),” it added.

Gross revenues declined 88.7% to P4.75 billion during the quarter from P41.96 billion posted during the same period last year. Total expenses dropped 66.9% to P13.54 billion from P40.91 billion.

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Passenger revenues dropped 93.9% to P2.25 billion from P36.76 billion. Cargo revenues improved 1.3% to P2.32 billion from P2.29 billion.

Ancillary revenues stood at P175.23 million, 93.9% down from last year’s P2.88 billion. In the first quarter, PAL’s net loss was P9.38 billion, more than 10 times the year-earlier level, as travel restrictions caused by the pandemic grounded its aircraft.

In July, PAL reported it had operated 640 local and international cargo flights carrying crucial medical and food supplies since March.

The flag carrier resumed in June and July some weekly commercial flights to the United States, Japan, Canada, the United Kingdom, Saudi Arabia, the United Arab Emirates, Southeast Asia, greater China and over 15 domestic destinations, along with occasional flights to Australia. — Arjay L. Balinbin

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