The operator of flag carrier Philippine Airlines, Inc. (PAL) saw its net loss widen by 6.5 percent to P799.7 million in the first quarter, up from P750.8 million a year earlier, as expanded operations came with higher fuel prices.
Revenues increased nearly 13 percent to P36.79 billion from P32.65 billion in January-March 2017 but expenses also rose by almost 14 percent to P36.9 billion from P32.4 billion, data released by PAL Holdings, Inc. last week showed.
The net loss attributable to parent equity holders was wider at P1.1 billion, up nearly 16 percent from P954.34 million a year earlier.
“Flying operations expenses increased by P3.08 billion or 18.4 percent, mainly due to higher fuel costs and lease charges,” PAL Holdings said in a statement.
“Jet fuel, which continues to be the airline’s biggest operating expense, registered an increase of P2.1-billion,” it added.
“This was brought about significantly by the rise in the average fuel price per barrel from $76.15 in 2017 to $88.24 in 2018.”
Leasing charges, meanwhile, hit P501.1 million with the addition of two Boing 777-300ERs in December, the holding firm said.
Passenger service expenses went up by 19.9 percent from the same period of the previous year’s P2.86-billion “primarily due to increase in number of passengers carried and increase in number of flights mounted.”
PAL Holdings closed at P9.54 per share on Friday, up nine centavos or 0.95 percent.
The Philippine Stock Exchange was closed on Monday for local elections.