PAL Holdings, Inc., the operator of the flag carrier Philippine Airlines (PAL), saw a 22.6% decrease in its attributable net income for the first quarter (Q1), falling to P3.6 billion from P4.65 billion a year ago, attributed to increased expenses during the period.
For the January to March period, the company’s expenses grew to P39.07 billion, marking a 12.7% increase from P34.68 billion in the previous year.
PAL’s higher expenses were fueled by its flying costs at P21.15 billion, accounting for the majority of its expenses at 54.1% share of its total spending for the period.
The company’s flying costs were also higher compared to P19.48 billion last year.
For the first quarter, the company recorded a combined revenue of P45.8 billion, which is 8.5% higher than the P42.21-billion top line logged in the corresponding period last year.
Broken down, passenger revenues surged to P40.35 billion from P37.62 billion, while cargo revenues contracted by 2% to P1.92 billion from P1.96 billion in the first quarter last year.
“[W]e are on track with our growth strategies, in the areas of fleet growth, route network expansion and service innovations. We are particularly pleased with the strong reception that the Manila-Seattle route has been getting since our announcement last month,” PAL President and Chief Operating Officer Stanley K. Ng said in a media release.
“However, supply chain issues remain and continue to put a strain on our operations, but we are determined to address these challenges.”
The airline company has allocated $450 million, or more than P25 billion, for this year’s capital expenditures to expand its fleet and meet increasing market demand.
PAL is scheduled to operate nonstop Manila-Seattle flights three times a week by October.
Seattle will be PAL’s sixth destination in the US and its eighth in North America, the airline said.
Earlier, PAL said it is also looking to explore more Asian and local destinations. However, some long-haul flights it plans to offer will be on hold for now until the arrival of its aircraft order.
At the local bourse on Thursday, shares in the company closed five centavos or 0.84 lower at P5.90 each. — Ashley Erika O. Jose